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Francisco Jiménez
Malaga
Monday, 24 April 2023
The Treasury in Spain had collected a whopping 4.43 billion euros from Malaga at the end of 2022, a record-breaking amount for the Andalucían province.
The eye-watering figure was 17.3% more than the 3.78 billion euros taxpayers contributed in Malaga in 2021, which was a record that year.
The rise in taxes could be attributed to IVA (Spain's sales tax) and personal income tax following strong recovery in employment after the Covid-19 pandemic.
In total, the state pocketed 255.4 billion euros last year, an increase of 14.4%. At a regional level, Andalucía contributed 17.66 billion in taxes.
The start of 2023 is also looking on the up for Malaga. According to the latest balance sheet, February showed the highest tax collection recorded in that month to date with 503 million euros, 10% more than in 2022 (457 million euros).
The province's economic take-off and job creation was driving the increase, as well as a rise in salaries and pensions, a population boom and the runaway rise in inflation. The Spanish tax agency (AEAT) acknowledged this itself stating in a report that part of the high growth in 2022 was closely linked to a rise in prices, paired with an “intense recovery in consumption”.
Growth in the income tax (IRPF) exploded, which, together with IVA, were the most important taxes for the Treasury.
The last financial year, again a historic one in Malaga province, ended with the collection of 1.89 billion euros, 27.4% more than the 1.483 billion pocketed in 2021. The 407 million extra represented two thirds of the 654 million more pocketed in the province.
According to AEAT experts, the main reasons for the strong growth were due to an increase in earned income, growth in employment, rise in salaries and an increase in average pensions. Solid results of the 2021 annual tax return, filed in mid-2022, also contributed to the strong figures.
The non-resident income tax (IRNR), which was applied to income obtained on Malaga soil by individuals and entities not based in Spain amounted to 185.4 million, 50% more than the 122.8 million in 2021 - Another all-time high.
The tax which slowed was corporate income tax, despite continuing to be the third largest source of tax revenue for the Treasury. Last year, companies based in the province generated a net income of 689.6 million euros, 16.3% less than the previous year's 824.7 million euros.
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