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Home Europa Press

Clavijo Acknowledges the Economic Climate Hinders IGIC Reduction Decisions

March 25, 2025
in Europa Press
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Clavijo Acknowledges the Economic Climate Hinders IGIC Reduction Decisions
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Galván (Vox) believes alternative measures could have been taken

Santa Cruz de Tenerife, 25 (Europa Press)

The president of the Canary Islands, Fernando Clavijo, has acknowledged that the prevailing economic situation dictates that a reduction or adjustment of the various rates of the Canarian indirect general tax (IGIC) cannot be resolved at this time.

This statement was made on Tuesday in response to a parliamentary inquiry posed by Vox deputy, Nicasio Galván, regarding when the regional government intends to fulfil its promise to lower this tax in order to alleviate the financial burden on residents of the Canaries.

“We cannot decide on a reduction or modification of IGIC rates because we are unaware of the ramifications that Donald Trump’s policies or those of the European Union may have on the Canary Islands,” he noted.

He highlighted that it is acknowledged that CC mentioned during an election campaign, and included in their programme, that the IGIC needed to be reduced. “And I can assure you that the IGIC has indeed decreased in the Canary Islands,” he remarked.

Clavijo stated that taxation serves as a tool to redistribute wealth through taxes and public spending, while also regulating the consumption of certain products that may be harmful, such as tobacco, alcohol, or sugary beverages, in an effort to discourage detrimental health habits.

Conversely, the president expressed a desire for a more robust and assertive public policy regarding agriculture, but reminded that there are currently no general state budgets or liquidation data available from the ministry.

“It is complicated without being aware at this moment whether Europe or the Eurozone, with a 25% increase in tariffs, may enter into two quarters of economic recession,” he added.

Thus, he stressed that “we are currently experiencing a period of significant volatility in a world that some have described as chaotic, and within that context, we must exercise caution.”

Galván (Vox): “Alternative actions could have been taken”

From his perspective, Nicasio Galván of Vox explained that according to budget execution figures, “more should have been accomplished regarding this issue,” especially considering that “the Canary Islands are enduring exceptionally challenging circumstances.”

In this context, he elaborated that the Canary Islands government had indicated that the phase during which the IGIC was increased for revenue purposes had already been surpassed, deeming it illogical to continue accumulating “record after record in collection.”

“If we factor in the total non-execution of the budgets, the savings from non-essential expenditures, and the reduction of administrative and bureaucratic overlaps, we could address the issue of IGIC, but we should also consider the AIEM, the regional component of personal income tax, as well as taxes on donations or inheritance,” Galván said.

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