Little tax is collected, in an unfair way

Jun 11, 2018

We are faced with an unfair fiscal policy that favours the employers’ association and the capital. It is a question of interest and distribution of wealth. ELA has recalled that the tax burden in southern Euskal Herria is 7.7 points lower than the average in the European Union.

To reach the average tax collection level in the EU, an additional 5,052 million euros would have to be collected in the Autonomous Community of the Basque Country (ACBC) and 1,675 million more in Navarra. ELA has reported the fraud existing in the collection of Corporation Tax.

The Secretary General, Adolfo Muñoz “Txiki”, the person in charge of the social area, Mikel Noval, and Iñaki Zabaleta, a member of the research bureau, all took part in the presentation of the report on tax collection in Southern Euskal Herria.

ELA has reported that fiscal injustice has worsened in recent years. Not only are there many more direct taxes on earned income than on businesses and capital, but the differences are increasing every year. Earned income makes up 92.9% of the income declared in Personal Income Tax in the ACBC and 9.8% in Navarra. The average income declared as earned income in the ACBC for this tax is 23,522 euros, virtually double that declared by those who have business or professional activities (13,654.8 euros). These differences have increased in recent years.

Accordingly, 76.8% of the companies in the ACBC declare losses or profits of under 6,000 euros per year in their Corporation Tax. This is just another example of the incredible tax fraud existing in non-salary incomes.

ELA has recalled that the fight against tax fraud is a key subject and that “there is no political willingness by the treasury departments to tackle this problem”. ELA has demanded “the tax cuts passed in recent decades for high incomes and capital to be repealed”.

The Secretary General of ELA, Adolfo Muñoz recalled the PNV’s support for the so-called “expense rule”, which makes it compulsory for any revenue obtained that is above the amount predicted, to be completely used to reduce the level of public debt.