The initiative for a new autonomous financing system will generate an increase of €20.975 billion for all communities under common regime by 2027, compared to the current model. Of this amount, nearly €16 billion will be obtained through a greater transfer of income from personal income tax (IRPF) and value-added tax (VAT). For the proposal to advance, it is necessary to obtain the approval of an absolute majority in Congress, which is not guaranteed, as it will require at least the support of the PP or Junts. During the presentation of the new financing model, Montero indicated that the Government’s proposal includes an increase in the proportion of revenue from IRPF and VAT 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 deposit tax, the gaming tax, and the waste tax. Although these revenues are already allocated to the regions, they will now be included in the distribution of the system. In 2024, IRPF generated €129.408 billion and VAT €90.541 billion. If a higher percentage had 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 VAT. Montero will now have to present the reform proposal to the autonomous communities at a Fiscal and Financial Policy Council that has yet to be convened. It will be the Cortes that will be responsible for approving the draft law resulting from the Council of Ministers.
