MIJAS Council has revealed it will finish the financial year with tens of millions of Euros left over.
According to media reports, data from the second quarter of the year shows the council is set to have a healthy surplus at the end of the year owing to “responsible management of the municipality and account keeping which has brought stability to the budget.”
The underspend has allowed the council to lower taxes in Mijas from 2018, as revealed in last week’s RTN, at a cost of around €5 million to the municipality. According to the town’s Mayor, Juan Carlos Maldonado, “the money will revert back to the people of Mijas who will be able to feel the results of the town hall’s sound financial situation in their pockets.” Mari Carmen Gonzalez, Councillor for Finance added the tax breaks were being offered “in a responsible way.”
As of next year, property tax (IBI) will be reduced from 0.508 per cent of a property’s value to 0.44826 per cent, while capital gains tax (Plusvalia), tax on some vehicles, inheritance tax and administrative fees will be lowered.
Capital gains tax will be lowered to 22 per cent, while inheritance tax will soon only apply to houses worth more than €100,000; double the previous amount of €50,000. Fees for auctions, contracts, administrative forms and competitions will also be waived if they are under €6.
Mayor Maldonado, explained “we have been limiting expenditure and making savings, restoring the town’s finances and we can pass on our good fortune to the people of Mijas. We do not have any debt and this can be enjoyed by locals, who benefit from the successful way we have run our finances.”
Mari Carmen Gonzalez added, “in the last quarter of 2016, we announced the beginning of a review of a significant number of taxes to benefit residents…after the study process, we approved the motion to lower taxes in 2018.”
Non-polluting vehicles, including electric and solar cars, will receive a 75 per cent tax reduction from next year, while vehicles which minimise pollution, including hybrid vehicles, will see a 50 per cent reduction.
The proposal was unanimously approved by all parties after the council received around 70 suggestions from the public. Tamara Vera, Councillor for Citizen Participation, explained, at the drafting stage we studied the feasibility of all proposals to see if they could be included in the document, eventually agreeing on legislation in which everyone was represented.”