Denia raises taxes

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THE reduction of the financial contribution of Spain’s Government to local councils has led Denia to increase some taxes in order to be able to guarantee social aid and the payment to suppliers in the coming year.

In the case of the local IBI tax, the rate will increases by 16,67% going from 0.90% to 1.05%. As for rubbish collection, which formerly stood at €99 per household, the figure will increase to €119.

These measures to compensate for the €2.5 billion that councils will cease to receive from the State, and Denia’s €1.3 million deficit in the rubbish collection, said Vicente Chelet of Denia council last week.

In fact the council’s proposed increases are intended to raise income for the town beyond that lost to the fall in government grants.

As an example, Chelet pointed out that previously where a home on the outskirts of the town was before paying €70, it must now must pay €80. On the other hand, if you are in the town centre, the figure will increase from around €350 euros to €405, and if it is a house in Les Rotes with a current bill of €1,200 euros in IBI, that figure will soar to €1,400.

In the case of the rate of urban refuse, the bill will rise by €20 euros for all homes and there will be a unified payment of €119 for shops and offices of up to 100 square meters.

One of the objectives of this rise in rates by 2012 is to help guarantee aid to the most disadvantaged groups, and the town’s the mayor, Ana Kringe, has pushed a motion to offset the increase in specific cases.

Thus, the long term unemployed, widows, pensioners and families on low income, may benefit from a 50% discount in their IBI and refuse bills.

Also SMEs (small businesses) who start up next year and have a less than 250 square meters surface will also qualify.

By Paul Deed

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