Communities lose 1.3 billion due to tax cuts, except for Catalonia

Autonomous communities in Spain are set to lose €1.3 billion due to tax cuts, except for Catalonia, which will gain €122 million. The Independent Authority for Fiscal Responsibility (Airef) warns that these tax reductions negatively impact fiscal balances, particularly in regions like Valencia and Andalusia. The trend of lowering taxes is common, especially during election periods, with significant losses projected for Valencia (€641 million) and Andalusia (€280 million). Madrid also continues to reduce taxes, leading to a loss of €118 million. In contrast, Catalonia's revenue will increase due to higher tourist taxes and other adjustments. The fiscal disparities among regions highlight ongoing issues with tax competition, termed "fiscal dumping" by Catalonia.