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Mayor House is guaranteed not to affect the increase in the pockets of citizens and demands "and" the Government of the Nation a municipal finance law

The decision of the National Government to raise VAT rates will cost the municipality of Murcia close to 2 million per year.

The Mayor, Miguel Ángel Cámara, who this morning presided over the opening of the Second Conference on Local Finance, engaged in this issue of VAT, has been contrary to the increased tax burden on citizens, "especially in times of as the current crisis and in the case of an indirect tax levied equally to all citizens, regardless of income level of each. "

The increased tax rate of 16%, which since July has risen to 18%, is causing more imbalance.

This increase affects most of the works contracts and supplies Local Government, and will represent an approximate cost to city coffers than 1.2 million per year.

Also, reduced VAT, which has increased from 7 to 8% will result in the need to pay 800,000 euros more per year to deal with some basic services provided by the council, as is the case of contracts for street cleaning or treatment municipal solid waste, and other social benefits such as home help for the elderly.

This extra cost of 2 million euros to be reflected in municipal budgets will have no impact on the pockets of citizens because, as explained by Mayor House, "the way out of the crisis can not be financially suffocating Murcia" .

House has insisted that the grave economic situation the country is in the municipalities most affected the Administration, so it becomes increasingly necessary to provide a local stable and adequate financing.

Therefore, the Mayor has once again claimed the need to articulate the participation of local authorities in government revenue and the Autonomous Communities, thus fulfilling the dictates of the Spanish Constitution concerning local funding.

Source: Ayuntamiento de Murcia