The initiative for a new autonomous funding system will generate an increase of €20.975 billion for all common regime communities by 2027, compared to the current model. Of this amount, nearly €16 billion will be obtained through a greater transfer of revenue from personal income tax (IRPF) and value-added tax (IVA). During the presentation of the new funding model, Montero indicated that the Government’s proposal includes an increase in the portion of IRPF and IVA revenue allocated to the communities, rising from the current 50% to 55% and 56.5%, respectively. The list of transferred taxes will also include the wealth tax, the bank deposits tax, the gaming activities tax, and the waste tax. Although these revenues are already assigned to the regions, they will now be included in the distribution of the system. In 2024, IRPF generated €129.408 billion and IVA €90.541 billion. Had a higher percentage been applied, this would have meant an additional contribution of €12.355 billion in funding for the autonomous communities: €6.470 billion from IRPF and €5.885 billion from IVA. Montero must now present the reform proposal to the autonomous communities in a Fiscal and Financial Policy Council that has yet to be convened, although it will be the Cortes who are responsible for approving the bill resulting from the Council of Ministers.
