The collection in Álava falls by 20.3% until July, 234.4 million less



Agencies | Drafting

The decrease has been generalized, both in direct and indirect taxes, due to the economic crisis generated by COVID-19. This fall is expected to recover in November.

The Hacienda of Álava has raised a total of 917.6 million euros, what supposes a decrease of 20.3% compared to the same period last year, that is, 234.4 million less entered into the foral coffers due to the economic crisis generated by the COVID-19.

“We are concerned about the effect on the decrease in activity. However, the fall in collection also has to do with tax deferrals approved by the Treasury, which will correct this trend in the last months of the year and which, in addition, are supplying an oxygen balloon for many companies and families ”, the deputy general of Álava has argued, Ramiro Gonzalez.

The Alava County Council has reported this Friday that the drop has been generalized both in direct taxes, where a total of 419 million euros have been collected until July, 12.7% less than in the first seven months of 2019, and in indirect taxes, where collection has been 416 million, a 24.3% less, a fall mainly motivated by the decreases in VAT and in Hydrocarbons.

The provincial entity has remarked that the decline in economic activity during the pandemic, as well as the postponements of personal income tax and companies to ensure liquidity to families and companies, and the permanence of the Alava economic fabric are behind this drop in collection.

Thus, in the area of ​​direct taxes, the Alava Treasury has collected a total of 255.7 million euros through VAT until July, 28.8% less than in 2019, which is justified by the decrease in activity economic and consumption.

The balance of the income campaign in July it presented a negative balance for the Alava Treasury of 97.7 million euros, when last year the negative amount was half, of almost 45 million euros. The Alava County Council indicates that this fall is expected to recover in the month of November when taxpayers make the income from positive returns.

Regarding the evolution of job withholdings, which mark the trend in employment and wages, collection has fallen by 0.83%, a more positive figure than that reflected in June (when the fall was 1.4%), although the Provincial Council confirms the downward trend of the collection for this concept.

With respect to freelance payments, the fall for the Treasury is just over 43%, due to the cancellation of the installments corresponding to the first half of 2020, which has meant almost 6.5 million less.

Follow the recommendationss in the face of coronavirus from the health authorities. In the face of fake news, pay attention only to official sources. If you live in the CAV and have symptoms, call your usual health center. The Health Council will also attend to people on the phone 900 20 30 50, offering information and solving doubts about the coronavirus. If you live in Navarra, call the Health Council telephone number: 948 290 290. Remember, the most effective way to prevent the spread of COVID-19 is hand washing. Masks are mandatory in the CAV from July 16, and in Navarra from July 17. In Iparralde it is compulsory in “closed public spaces” from July 20.

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George Holan

George Holan is chief editor at Plainsmen Post and has articles published in many notable publications in the last decade.

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