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The VAT rise will also reduce the investment capacity of municipalities and autonomous regions

The Popular Party of the Region of Murcia increased to the full of all the municipalities of the Region and the Regional Assembly a motion requesting that the National Government to rescind the VAT increase scheduled for July .

Deputy Secretary of Organization and Institutional Relations of the Partido Popular in the Region of Murcia, Pedro Antonio Sánchez, explained that the rise in consumption taxes in an economic crisis like the one facing our country is "utterly undesirable" because " adversely hurt consumption and therefore also in investment and employment, which will delay economic recovery without having an impact on collection only. "

Sanchez said that "the big losers will be the citizens themselves, because they will have more difficulties in accessing basic consumer goods" and "they'll keep paying in full the VAT hike, as" the margin that remains to businesses to take on the climb through price reductions is very small. "

"Do not forget also that there are now more than a million households with all members unemployed and 60% of Spanish households have difficulty recognizing that to meet monthly expenses, which indicates that is the best time to take a measure as unfair as the VAT hike, "added the deputy secretary of the PP.

CAPACITY DECREASE INVERSORA

Besides the negative impact this increase will have on products and services, Pedro Antonio Sánchez has warned that the municipalities and autonomous regions will also drastically reduced its capacity to procure works and services provided to citizens.

"We must not forget that VAT will rise 14 million euros annually to the municipalities of the region and more than 21 million euros for the Autonomous Community, will undermine the investment possibilities."

To this we must add the damage that the VAT hike will also affect the projects contracted under the current State Fund for Employment and Support Local and State cut of 3,000 million euros less to the municipalities.

Therefore, the deputy secretary of the PP has said that "this socialist government as severely worsen the already difficult situation being experienced by local councils."

In this line, where the PP motion also urges the Government to "immediate negotiations" with the political parties and associations most representative of the local area to engage in "joint system reform and local government funding, which ensures that the entities Local institutional framework, and adequate financial powers to deal with the difficult situation and improve the financial situation of local councils. "

Source: PP Jumilla