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The PP says that "the VAT hike will be a further brake on economic and financial situation of municipalities" (04/03/2010)

The Councillor for Finance, Bartholomew Pallares, said that the increase in VAT which has designed the Zapatero government will be a further brake on economic and financial situation of municipalities and totaled about 14 million euros per year which should pay Councils in the Region of Murcia for this concept throughout 2010.

These concepts will be coming to the certification of works and services in the municipalities as a result of the increase by two percentage points from 16 to 18 percent who approved the government of Rodriguez Zapatero.

Pallares has said that the VAT increase will "drop most other municipal coffers, and suffocated by the lack of commitment of the Government of Zapatero with the municipalities and said that not only does not conform to reduce local funding, but now gives a new twist and increase the VAT.

So, has accused the government of Zapatero to reduce state revenues to the municipalities in Murcia and has indicated that from 2009 to 2010 the state has cut by 25% the funds allocated to the municipalities, which means about 6,000 million least for the consistory in crisis.

The popular mayor has claimed that the National Government, instead of creating jobs and wealth in Totana, trying to destabilize the municipal coffers with the descent of eleven per cent per month on money transferred from State taxes monthly to the City Council Totana.

In 2009 the state government transferred 417,000 euros each month in taxes each of the totaneros, however, and in the first month of 2010 has recorded a drop of 11 percent, 347,000 euros, 43,000 euros less Each month the City Council fails to receive the money that it deserves.

Pallares recalled that one of the commitments of Zapatero was to approve the 2004/2008 period the Local Finance Law, however, has not only successfully concluded the negotiation of the law, but it's over, this year dropped the money transfers.

He has also criticized the VAT increase will cause a double disservice to citizens and that "in addition to paying the increased tax on all goods also have to pay higher prices for municipal contracts."

It has also impacted the PP will continue to require a profound change in government economic policy for the Executive to rescind the VAT hike.

Source: PP Totana

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