On September 21st, Rafael Granell, member of the Regional Taxation Chair, was interviewed in the Valencia plaza media.

Following the recent announcement by the President of the Regional Government of Andalusia, Juan Manuel Moreno Bonilla, of a 100% rebate on Wealth Tax in Andalusia and a deflation of the regional Personal Income Tax, the debate on the downward tax competition between Autonomous Communities has been reignited.

In this interview, the suitability of tax harmonisation, which has been raised in the political sphere in recent years, was discussed. Rafael also raised the need for a change in the financing system of the common regime Autonomous Communities. In any case, it was pointed out that such tax reforms will always contain an ideological component. 

Finally, Rafael Granell explained the possible consequences of other autonomous regions implementing tax measures such as those announced in Andalusia. Some of the negative effects would be the mobility of the tax residence of many taxpayers - especially those with higher incomes and wealth - and a reduction in public revenue that would reduce the public services provided to all citizens.