June 20th, 2024 | 10:16


The new tax classification of Bizkaia

The new tax classification of Bizkaia A blow to progressivity and the most humble neighborhoods

Jeickson Sulbaran

May 10, 2024 | 12:09 p.m.

EH Bildu criticizes the loss of progressivity in the new tax classification that will mainly affect neighborhoods with lower purchasing power

The recent change in the tax classification of streets, proposed by the local government and which reduces the tax categories from seven to five, has generated significant concern in Bizkaia. According to Maria del Rio, EH Bildu spokesperson, this adjustment represents a loss of progressivity in the tax system, disproportionately impacting neighborhoods with fewer economic resources. This change classifies neighborhoods previously in the sixth and seventh categories to the fifth, resulting in substantial increases in rates and taxes for areas such as Peñaskal, Masustegi or Larraskitu, which could see increases of up to 50% in certain rates.

The lack of transparency and the absence of prior dialogue with opposition groups have marked this process. Del Rio denounces that the reform has been carried out behind closed doors, without prior analysis or adequate consultation with the affected parties, which raises serious questions about the equity and justice of the new tax scheme. This closed approach avoids a necessary debate on the long-term implications of fiscal policy for the citizens of Bizkaia.

The new tax classification of Bizkaia: A blow to progressivity and the most humble neighborhoods

The government's focus on cadastral values ​​and omission of other critical factors in determining tax categories raise additional problems. For example, the situation of empty premises or the capacity of companies to generate income has not been considered, which could lead to significant injustices in the tax burden between different sectors and areas. This unilateral approach not only affects residents, but also companies located in lower categories, which now face a tax burden comparable to that of large companies with higher incomes.

The update of the tax classification has left behind the industrial estates, which in most of the municipalities of Bizkaia are in the highest category, a situation that many consider inexplicable. This discrepancy shows the lack of a coherent and well-founded policy that truly reflects the economic and social differences within the province.

Essential services such as home care and waste collection have also been affected by current tax policy

Despite the increases in the prices of home care services, which have come into force since January, the government has not made adjustments to the corresponding rates, leaving many citizens without the possibility of accessing to basic services necessary for their well-being. Furthermore, the lack of review of garbage rates, which should incentivize waste reduction and encourage recycling, shows a disconnection with the environmental and social needs of the community.

The proposed tax reform reflects a lack of consideration for equity, transparency and citizen participation. The decision to alter the tax structure without an exhaustive and shared analysis, and without adequately informing those affected, is not only a setback in terms of tax progressivity, but also highlights a worrying lack of commitment to social and tax justice in Bizkaia. .

It is crucial that local government reconsider its approach and pursue tax reform that is equitable, transparent and beneficial to all sectors of society, especially the most vulnerable. Only in this way can it be guaranteed that Bizkaia's fiscal policies are truly fair and effective in the distribution of the tax burden and in the promotion of sustainable and equitable development.

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