The Ministry of Finance intends to increase the proportion of the revenue from Personal Income Tax (IRPF) and Value Added Tax (VAT) allocated to the autonomous communities, raising the current percentage from 50% to 55% and from 56.5%, respectively. This information was confirmed to EFE by sources informed about the agreement between the Government and ERC. This increase would mean that the majority of the revenue generated by Spain’s two main taxes would be allocated to the autonomous communities, and it forms part of the proposal to reform the system of autonomous financing that the Vice President and Minister of Finance, María Jesús Montero, will present to the media. According to ERC, Catalonia would receive €4.7 billion in the new autonomous financing, a figure that the Government considers fair. However, this proposal does not convince Junts and is rejected by the PP. Today, Montero will unveil the details of the proposal following the Thursday meeting between the President of the Government, Pedro Sánchez, and the leader of ERC, Oriol Junqueras.
