Benidorm lowers the IBI and the vehicle tax and maintains the rate of tables and chairs until the end of 2022


October 19, 2021
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Benidorm City Council is going to lower the IBI (property tax) and the vehicle tax and will keep the fee for the installation of tables and chairs suspended until the end of 2022. This was announced by the mayor, Toni Pérez, who explained that “these The measures constitute the first phase of the Municipal Tax Reduction Plan ”that“ will continue in 2023 ”and with which“ we fulfill the commitment that we adopted at the beginning of the legislature to progressively reduce the tax burden ”. A commitment that can be fulfilled "thanks to good economic management", which has allowed "the early cancellation of the Adjustment Plan and the reduction of municipal debt by €84 million euros since June 2015".
 
This "gradual reduction" of taxes and fees, which "will redound to both the social and productive fabric", is carried out "with all precautions", ensuring "compliance with spending control measures", "without impact on the provision of services provided by the City Council ”, and“ without renouncing investments ”to improve the city, especially those that“ are affected by European subsidies or from other Administrations ”.

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The mayor explained that the lowering of the IBI and the Mechanical Traction Vehicle Tax (IVTM) for 2022 and the suspension of the table and chair rate until December of next year "are a complement to the aid that has been injected and they will continue to be injected into family economies and the productive fabric ”to alleviate the consequences of the pandemic. 

The proposed modification of Tax Ordinances number 1, 3 and 20 will be voted on in the plenary session at the end of the month, so that they become effective in 2022.

On the first, Toni Pérez has detailed that the tax rate of the urban IBI passes from 0.682 to 0.670, maintaining the 75% discount for large families. The mayor has advanced that "the decrease for next year is only the beginning, since the plenary agreement includes the commitment to continue with the gradual reduction of the IBI in 2023". Likewise, it has clarified that "the City Council is not going to take advantage of the IBI increase of up to 150% for empty houses that apparently the Central Government is going to include in the new Housing Law" and whose application remains in the hands of local administrations.  

With regard to the Tax on Mechanical Traction Vehicles (IVTM), it has indicated that the decrease is "very relevant since it reaches all the coefficients" and that it is between 18'75 and 47% depending on the type of vehicle". The most significant is the one that occurs in mopeds and motorcycles of up to 125 cc, which will pay practically half that until now, the legal minimum allowed; while the vast majority of passenger cars will pay 23.52% less. In addition, the 75% bonuses for hybrid and electric vehicles will be maintained.

Regarding Tax Ordinance number 20, the one referring to the rate of occupation of tables and chairs on public roads and which affects the hotel and restaurant activity, "we are going to approve keeping it suspended until 31st December, 2022". Toni Pérez recalled that this suspension has been in force since the declaration of the state of alarm, on 14th  March, 2020. 

The mayor has specified that these three fiscal measures announced today translate into 1.6 million euros, "an amount that the The City Council is going to stop entering ”and that the families and the productive fabric of Benidorm will not have to pay. 

Toni Pérez has stressed that "at a time when the state and regional fiscal pressure is increasing", and with the CPI and the price of energy on the rise, "this government fulfills the commitment to lower taxes."