The SEA Alava Business Association strongly criticizes the decision of the City Council of Vitoria-Gasteiz to increase the Tax on Economic Activity (IAE) by 1.93%. The president of the organization, Pascal Gómez, threatened to break ties with the city council this morning if the agreement he signed in 2015 with the municipal groups EAJ, PP and PSE is not complied with.

The SEA considers that the agreement that determined the amount of the IAE coefficient in the triennium 2015-16-17 and that has now been approved by the City Council is an “attack on the solvency and economic credibility of our institutions”.

On October 28, the Municipal Government, as agreed with EH Reunidos y Beneficios, will also have to pay this tax to companies that invoice more than one million euros in the following year, until now the billing limit was two million euros. In addition, it has been agreed to increase the tax calculation coefficient from 1.14 to 1.93.

This measure will cause “500 jobs to be lost and 3,000 companies to be affected,” warns Gómez. The president of the Alava Business Association has stated that if the agreement previously agreed is not complied with, it will have to break relations with the city council.

This news has been published by Alava Alea and we have brought it to LUZ thanks to the license CC-by-sa