The Canary Islands will appeal to its status as an outermost region of the EU when requesting the Spanish Government and the community authorities to accept its approach to modify its Economic and Fiscal Regime (REF). to be able to subsidize personal income tax for people who work in the Islands.
This is what they stated this Monday the vice president and Minister of Economy of the Government of the Canary Islands, Manuel Domínguez (PP)and the commissioner of the autonomous community for that law, José Ramón Barrera, before inaugurating a meeting on the modernization of the REF in which representatives of the Association for the Progress of Management, the Lopesan tourism company and the signing of Casticapital investments.
Barrera has insisted that this proposal, which has been criticized by opposition parties, who believe that the REF should be used more to encourage business investment than to cause tax savings for taxpayers, which will have an impact on regional budgets, pursues that the Canarian jurisdiction “puts a businessman from the Canary Islands in the same situation with another from Soria, but also a worker from the Canary Islands with one from Soria.”
«Let’s see what the limitations are, there are some, if we can solve them and whether or not it can be implemented in this new REF model of the future that we want to build,” he said.
Barrera has admitted that There are “legal limitations, regarding the technique to be used; in terms of fitting into the current regulatory framework, where Europe is the main protagonist, and also the budgetary limitation.”
However, he has highlighted that the Canarian Government of which he is a part, with the rank of advisor, “will not remain in those limitations, but will look for a solution«.
On this issue, the vice president and Canarian Minister of Economy, Manuel Domínguez, has considered that “what the REF needs is to be known by the population in general, politics in particular and by the business sector in greater depthfor which modifications are needed that make the citizen notice it in the first person.”
«We have proposed that through the Personal Income Tax there are competitive advantages for working in the Canary Islands, a differential is recognized with respect to the rest of the national territory in order to then have our REF much closer. and that it be one of those competitive advantages that allows the creation of jobs«on the islands, he stated.
For Domínguez, “the most important thing is that the Canary Islands have a higher per capita income and greater consumption capacity over time.”
Manuel Domínguez has estimated that the fact that the Canary Islands is a RUP “helps it to be understood more correctly from Europe, which has a lot to say in any modification or proposal that is proposed of the REF”, which its regional Government “claims as a right, and not as an advantage.