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Asturias rejects the PP's tax proposal and defends its income tax reduction for middle incomes

Finance Minister Guillermo Peláez describes the PP's income tax proposal as 'hackneyed' and defends the Asturian tax reform.

Marta Uriarte ElizondoMarta Uriarte Elizondo· · 3 min read

Finance Minister, Guillermo Peláez, describes the PP's proposal to deflate income tax and adjust deductions as 'hackneyed', and defends the tax policy of the Principality, which has increased tax benefits from 8 to 90 million euros.

The tax debate in Asturias has returned to the forefront of politics. Finance Minister, Guillermo Peláez, responded this Saturday to the Popular Party's proposal to deflate income tax and adjust the income limits for accessing deductions. Peláez labelled the initiative as 'rather hackneyed' and asserted that behind this technical concept lies a tax cut for high incomes and large estates.

A 'hackneyed' proposal that hides cuts for high incomes

The president of the Asturian PP, Álvaro Queipo, proposed two measures on Saturday to alleviate the tax burden on Asturians: deflating income tax for all taxpayers and also adjusting the income limits that determine access to deductions. However, the proposal has not been well received by the regional government, led by Adrián Barbón.

'It is a tax proposal that is already quite hackneyed,' Peláez stated. 'They always talk about deflating the rate, but behind that technical concept lies a tax cut for high incomes and large estates.' The minister contrasted this proposal with the tax policy promoted by the Asturian government over the past year.

The Asturian tax reform: 40 million for middle incomes

Peláez recalled that last year the Government of the Principality of Asturias promoted a tax reform worth 40 million euros that reduced taxation for incomes below 55,000 euros. However, the Popular Party voted against it. 'And they voted against it because we raised it by half a point for those earning over 175,000,' the minister explained.

In Peláez's view, this position highlights the Popular Party's approach to taxation. 'I believe this clearly shows the Popular Party's position on tax matters,' he pointed out. In contrast, he defended that the regional government will continue to advocate for a tax policy aimed at social majorities: 'We will work to continue deepening the Asturian tax path, ensuring that all tax benefits are concentrated on the middle and working classes.'

The minister emphasized that since Adrián Barbón took office as president, the amount of tax benefits in income tax has risen from 8 million euros to over 90 million. 'These measures have been repeatedly approved with the Popular Party voting against them,' he indicated.

An uncertain future for PP support for new tax cuts

Peláez expressed skepticism about a possible change in the PP's stance. 'We are not very optimistic because they have always voted against all the tax cuts proposed by the Government of the Principality of Asturias,' he stressed. Nevertheless, he urged the Popular Party to position themselves in the immediate future: 'If they truly support a tax cut for the middle classes, they will soon have the opportunity to support it in Parliament.'

The difference in tax models between the two parties is, according to the minister, evident. 'The Popular Party defends the interests of high incomes and large estates,' he stated. Meanwhile, the Asturian government insists that its tax policy is focused on the middle and working classes, an approach that, according to Peláez, has already shown results with the increase in tax benefits.

For Asturian taxpayers, the key lies in the coming months: whether the PP supports the new measures that the government brings to Parliament. The decision will determine whether middle and working incomes see their tax burden alleviated or if the debate remains entrenched.

Marta Uriarte Elizondo

Written by

Marta Uriarte Elizondo

Redactora

Graduada en ADE por la Autónoma y emprendedora frustrada (dos veces). Coleccionista de pitch decks, cafetera y optimista pese a las estadísticas; en Iber Empresa firma las pymes y las startups.