Portal de Puerto Lumbreras
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"The tax increase will hurt the economic recovery by reducing the consumption and investment."
On the other hand, the municipality claims that the National Government for the immediate negotiation with political parties and associations most representative locally to provide Local Authorities of an institutional framework and adequate financial powers to deal with the difficult situation.
The City Council of Puerto Lumbreras in Full Council approved a motion urging the National Government to rescind the rate increase of VAT due in July 2010.
The motion was adopted by 12 votes in favor of PP and IU, and 4 against the PSOE.
"The tax increase in a situation of economic crisis is an unwise measure that will hurt the economic recovery due to the negative impact it will have on consumption and investment," said Dolores Sands, spokesman for the Municipal People at City Hall Puerto Lumbreras.
Among other agencies, the Organization for Economic Cooperation and Development (OECD) warned of the negative effects of the VAT hike will have on the economy, and recommended to the Government in its semiannual Outlook to postpone the increase in VAT to 2011 for "The economy will recover more solid."
Despite this, the Government introduced a State Budget for 2010 that not only provide for an increase of 17% of non-financial expenditure of the state with respect to the 2009 budget, but "introduces the major tax increases of democracy" says Arenas.
In this sense the consistory lumbrerense further urges the Central Government to immediately negotiate with political parties and most representative associations of local, on the whole system reform of local government funding for Local Authorities to provide an institutional framework, competence and financial framework to address the current difficult situation.
"Besides the negative impact that the VAT increase derived in everyday products and services, municipalities and autonomous regions will be drastically diminished their capacity to procure works and services, and this cut will be added to 3,000 million lower Local Authorities that fail to receive state transfers for this year, "said Arenas, who concluded by saying that" the big losers will be the citizens themselves doubly punished, both in its difficulty of access to basic consumer goods, such as quality of service delivery they receive from their municipalities.
Source: Ayuntamiento de Puerto Lumbreras
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