The Valencia regional government has approved the decree law that regulates the 10% discount on own rates and public prices managed by the Generalitat until December 31, 2022. It is estimated that the measure directly benefits a total of more than 1,300 ,000 Valencians and represents cost savings for Valencian families and companies close to 30 million euro.
This is a temporary reduction that is part of the Reactive Plan, with the aim of mitigating the impact of inflation on the economy of Valencian families and companies, preventing their purchasing power from being further affected, as well as alleviating and control the negative effects they may produce on real income and employment.
In fact, this bonus responds to the Consell’s desire to deal with the increase in inflation that has triggered the supply problem linked to the COVID-19 stoppage, as well as the increase in the price of raw materials and energy due to of the overdemand for economic recovery and aggravated after the invasion of Ukraine by Russia.
Taxes included
The approved decree law affects rates of a transversal nature and linked to a large number of benefits and services provided by public administrations, thus helping to contribute to mitigating the impact of inflation on the structure of family and business costs.
Specifically, the measure affects all own fees, regulated by Law 20/2017, with the exception of fees for university services and as long as they are not voluntarily requested or received by taxpayers and are not provided or made. by the private sector, whether or not its reservation is established in favor of the public sector.
On the other hand, the fees for Sanitary Inspections and Controls of Animals and their Products, regulated by Law 10/1997, have been considered for this purpose; port fees, regulated by Law 1/1999, with the exception of services for fresh fishing and marine aquaculture; and the fees for the use and occupation of spaces in the ports of the Generalitat by virtue of authorisation or concession, included in Law 2/2014, with the exception of the fee for the first sale of fish.
All public prices set by the Generalitat will also be reduced by 10%, with the same temporary limitation from the entry into force of the decree-law until December 31, 2022.
It must be taken into account that this measure only affects discounts in favor of the Administration of the Generalitat and its instrumental public sector that are carried out under public law. In other words, the compensation required by entities subject to private law will not be included.
Thus, the prices received by public law entities, public business entities, as well as commercial companies and public sector foundations, are excluded from the scope of application of the measure, insofar as they are subject to private law.
The consortiums of which the Generalitat forms part are not included either, insofar as their creation is due to an agreement signed between the parties, and their modification would imply a decision that should be adopted within the consortium itself, in accordance with the agreement that regulate it.
Exemption for 6 months
On the other hand, a 6-month exemption is established for port fees for services to fresh fishing and marine aquaculture, as well as for fees for use and occupation of facilities for the first sale of fresh fish, which are excluded from the overall reduction of 10%.
Given that in the case of the G-4 port fee, the settlement period is monthly, while in the rates for use and occupancy, the settlement period is six-monthly, in order to accrue the benefit without altering the rule of accrual and requirement of the tax, a special rule for calculating the taxable base has been introduced by which the elements for its calculation generated during the validity of the benefit will be excluded from the computation of the taxable base.
University fees
With regard to university fees, they are also excluded from the general reduction insofar as they are not included in the budgets of the Generalitat, they are managed by the universities themselves and their amount is subject to limits set in the scope of action of the corresponding collegiate bodies.
However, in accordance with the purpose of the decree, it establishes for the next academic year 2022/2023 a reduction of 10% in the reference rates of the different concepts included by university services in Decree 168/2021, of October 8, of the council
This reduction in university fees will also revert to the families of the 132,000 students of the five public universities of the Valencian Community.
