The Generalitat’s budgets for 2021 will exceed 25,000 million euros for the first time, supported by a revenue forecast that, in terms of tax collection, already reflects the negative impact of the current economic crisis derived from the pandemic. To the extent that for the main tax managed by the Generalitat, and which is closely linked to real estate activity, a collapse is expected that will leave the public coffers without 407 million euros next year.
Its about Tax on Patrimonial Transmissions and Documented Legal Acts, which taxes, for example, the sale of homes. Among those managed directly by the Generalitat, it is the one that contributes the highest revenue to the public coffers. The estimate for 2021 is to raise almost 1,073 million in this way, when the total sum of these taxes managed by the Generalitat amounts to more than 2,458 million euros, that is, 0.14% less than in 2020.
However, in the case of the Tax on Patrimonial Transmissions and Documented Legal Acts, the accounts of the Consell contemplate a much higher fall, down to a decrease of 27.51%. In other words, next year the Valencian Government assumes that he will enter 407 million less for this tax, since the 2020 budgets contemplated a collection of 1,480 million. Then the forecast was already lowered due to the slowdown in the real estate sector, although the fall was almost 9% compared to 2019.
It must be taken into account that, in just two years, the Generalitat’s accounts reflect a collapse in the collection for this tax of practically 600 million euros. In the budgets of 2021 it is not the most important decrease, since it is only exceeded by the gambling tax rate: 28.64% less, although reaching almost 121 million euros.
For the rest of taxes, the falls in the collection are more moderate: 7.12% less in the tax of Heritage (up to almost 145 million euros) or 0.18% less in that of Successions and Donations (up to 292 million euros). On the contrary, the forecast of an increase in collection in concept of public prices, going from 1.7 million to almost 5.2, that is, an increase of 202.53%.
The Consell’s own economic report states that a total of 74,959 homes were sold in 2019, 4.8% less than in 2018, according to the INE, which represents a somewhat greater drop than in the whole of Spain (-2 , 8%). However, in the first semester of this year the collapse was 28.6% in the Valencian Community (four points more than the Spanish average): Only 28,074 homes were sold, a figure clearly weighed down by the impact of the pandemic and the months of confinement and economic stoppage.
In fact, the collapse in the sale of homes between April and June it was 48.9% compared to the same period of the previous year. In the first quarter there was also a decrease, but not so marked (-8.1%).
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