“The measures are very positive because of their widespread impact.” This is a summary made by the Dean of the College of Economists of Valencia, Juan Jose Enriquez, When asked about the tax proposals announced by Consell this week. Specifically, it points to deductions that allow you to deduct expenses for oral health, mental health, sports activities, or eye care services. “It favors areas that affect many people, where there is a lack of public coverage and there is a common benefit,” he explains.
In addition to this “generalized impact” on a large portion of taxpayers – they are expected to help almost two million – Enriquez explains that these tax breaks will help promote economic activities such as sports training with a powerful sector. Behind them like federations or gyms.
But it also adds a collateral effect: it can help encourage the billing of activities that escape Treasury control. By requiring invoices to deduct these costs, the Dean of the College of Economists promises the new measures will “allow greater control over the underground economy.” To deduct the cost of a private practitioner, for example, an invoice is necessary to justify that charge. The risk of exercising in black is low.
It also assesses a reduction of two points in property transfer tax on the purchase of a house. “This prevents, in many cases, access to a home, especially younger people, to access a home,” explains the economist, stressing that this tax cut “facilitates purchase.”
Enriquez, however, mentions a limitation that he does not consider “contingent”. Income tax deductions for the above expenses are limited to the family unit. “Their expenses should also be included,” he explains, which leaves students living in their family home and not deducting their expenses as an example.
