The Basque haciendas will raise 14,367 million in 2017, 5% more

The Basque Estates will close the year with a collection of 14,367 million euros, which - minus the effect of regulatory changes in VAT - represents an increase of 269 million euros (+ 4.7%) compared to what was expected. The Basque institutions expect a similar collection for 2018.

This forecast of the closure of collection for this year has been set by the Basque Government and Provincial Councils of Álava, Gipuzkoa and Bizkaia, and the Town Councils of the Basque Council of Public Finances (CVFP) held this Wednesday in Vitoria -Gasteiz.

Several agreements have been reached at the meeting of the Basque Finance Council, including the commitment to agree on a new Contributions Law in 2018, although both the Treasury Minister of the Basque Government Pedro Azpiazu and the three general deputies have ensured that in the meeting has not addressed the issue of tax reform in which the regional governments of the three territories work.
The Basque Government and the deputies have set the forecast of closing of collection for taxes arranged for this year, amounting to 14,367 million euros. This figure is 869 million higher than that foreseen in the Euskadi Budgets of this year, and is the highest ever obtained, above the 13,772 million euros collected in 2007.

However, 600 of these 869 million euros increase are due to the VAT adjustments introduced this year, so they do not correspond to the real evolution of the economy. Discounting the impact of this situation, the increase over budgeted revenues would be 4.7 percent.
By territories, the forecast of income for this year amounts to 7,144 million euros in Bizkaia; 4,449 million in Gipuzkoa; and 2,174 million in Álava. The bulk of the revenue from the regional estates corresponds to VAT (5,943 million euros) and personal income tax (just over 5,000 million). Income from Corporate Tax will total 1,142 million euros.

Negotiation continues for tax reform

It was not on the agenda, however, the tax reform, which continue to negotiate PNV and PSE-EE and which increasingly seems closer to not bring about a fall in corporate tax.

Concerning the tax reform, the agreement between PNV and PSE-EE does not give the impression of being close. Both parties are still negotiating, but it is possible that the companies of the CAV will continue to apply a nominal rate or rate of 28%. The deputy general of Bizkaia, Unai Rementeria, recalled that the jeltzale proposal raises a reduction of 3 or 4 points in corporate tax, but the Socialists do not accept it, so that the agreement, if produced, would come through of other measures. Basque government spokesman Josu Erkoreka did not hide those differences on Tuesday, but stressed that they will persevere "to the end" in the talks.