bonitatime
26-08-2011, 17:25
http://www.eldia.es/2011-08-26/canarias/1-Gobierno-rebaja-IGIC-vivienda-nueva-desgrava-reformas-domesticas.htm
The purchase of new housing will be cheaper in the Canaries until at least December 31, 2012, after the Governing Council agreed yesterday to reduce the tax that applies to the autonomous region, IGIC, for house purchases, from the current 5% to 2.75%. Of course, not be applied to all homes but to main homes upto a maximum cost of 150,000 euros.
The regional government adopted a measure similar to the state, although the latter has no limit to the price of housing and the tax rebate, theirs being the IVA-8% to 4%.
The downgrade of acquisition tax is in addition to other relief to housing reforms. What is planned by the Government is twofold: to stop underground economic activity by forcing taxpayers to obtain invoices to deduct any building work done on their residences, and revive the impoverished construction industry.
Both measures were presented yesterday by the president of the regional government, Paulino Rivero, after holding a Governing Council monograph on the economic situation.
"No tax effect"
Asked about the decline of income for both measures and how they will affect the autonomous region, Rivero referred to the former as "difficult to quantify," and argued that it is "close" to when families purchase a residence with the system of “Protecion Oficial” housing where the government pays some of the interest, a similar figure to the 2.5% IGIC reduction.
As for the second, the president said that not only will it not lower tax revenues "in these times when work is so needed," it will generate new revenues to economy that so needs it.
This tax relief, which will come out of next years budget is available from September this year and will be available for the next three years he said.
For Rivero his government, which is composed of CC and PSC aims right now to help the "disadvantaged" and to create jobs.
"What has been done in Spain does not generate employment and also only benefits the wealthy," said Rivero, whose party is necessary for the central government to pass any major law change, similar to the one that was agreed yesterday for rehabilitation, although it focused on tourism.
"Spain,”he said “needs a solution to the problems with a plan for construction and tourism Renewal," he said.
As for the state social measures such as extending the aid of 400 euros for the unemployed in training or extend the use of generic medicine to cut health spending by government, the regional president said he "strongly agrees."
The purchase of new housing will be cheaper in the Canaries until at least December 31, 2012, after the Governing Council agreed yesterday to reduce the tax that applies to the autonomous region, IGIC, for house purchases, from the current 5% to 2.75%. Of course, not be applied to all homes but to main homes upto a maximum cost of 150,000 euros.
The regional government adopted a measure similar to the state, although the latter has no limit to the price of housing and the tax rebate, theirs being the IVA-8% to 4%.
The downgrade of acquisition tax is in addition to other relief to housing reforms. What is planned by the Government is twofold: to stop underground economic activity by forcing taxpayers to obtain invoices to deduct any building work done on their residences, and revive the impoverished construction industry.
Both measures were presented yesterday by the president of the regional government, Paulino Rivero, after holding a Governing Council monograph on the economic situation.
"No tax effect"
Asked about the decline of income for both measures and how they will affect the autonomous region, Rivero referred to the former as "difficult to quantify," and argued that it is "close" to when families purchase a residence with the system of “Protecion Oficial” housing where the government pays some of the interest, a similar figure to the 2.5% IGIC reduction.
As for the second, the president said that not only will it not lower tax revenues "in these times when work is so needed," it will generate new revenues to economy that so needs it.
This tax relief, which will come out of next years budget is available from September this year and will be available for the next three years he said.
For Rivero his government, which is composed of CC and PSC aims right now to help the "disadvantaged" and to create jobs.
"What has been done in Spain does not generate employment and also only benefits the wealthy," said Rivero, whose party is necessary for the central government to pass any major law change, similar to the one that was agreed yesterday for rehabilitation, although it focused on tourism.
"Spain,”he said “needs a solution to the problems with a plan for construction and tourism Renewal," he said.
As for the state social measures such as extending the aid of 400 euros for the unemployed in training or extend the use of generic medicine to cut health spending by government, the regional president said he "strongly agrees."