The Canarian Vice President and Minister of Finance, Budgets and European Affairs, Román Rodríguez, has signed the order for the return of 99.9% of the fuel tax to carriers, farmers and ranchers of the archipelago until July 31 and with retroactive effect from last March 1.
The order eliminates, de facto, the Special Tax on Fuels Derived from Petroleum for professional carriers, which until now represented half of that applied in the rest of Spain and, of that half, they only have to pay 32%, since the another 68% was returned by the Canarian Government. That return now and until July 31 will not be 68 but will be practically full.
Given that the IGIC of the fuel is taxed at type 0, this means that carriers are not used any rate, while in the other autonomous communities VAT is 21%.
Rodríguez clarified that the exceptional measure was adopted to alleviate the production costs of these sectors, multiplied by the increase in fuel prices.
Signing of the order by Román Rodríguez – Government of the Canary Islands
The refund "constitutes an element that technically should have a positive impact on consumer prices and should be accompanied by a containment of the same in the benefited sectors," says the rule.
Taxes will not be lowered
The vice president and director Román Rodríguez insisted on the specific, temporary and sectoral nature of the measure adopted, maintaining the position of recent weeks of not making generalized reductions. He is opposed because "they seriously affect the provision of essential public services and prevent the administration from adequately assisting the weakest", he has said.
Rodríguez has put on record that the Executive opted to make selective adjustments such as the one approved this Friday and as those applied in the case of the eruption in La Palma and Covid-19.
Precisely, the Treasury has adopted since the beginning of the pandemic a series of measures to alleviate the tax obligations of taxpayers regarding medical equipment, to which others were added in favor of those affected by the eruption.
In the latter case, there will be two decree-laws on exceptional taxes for the reconstruction of homes, both on rural and urban land, which will discharge the fiscal pressure for the victims.
