Catalonia to reduce personal income tax for 2.6 million taxpayers 

The Catalan government is preparing a reduction in personal income tax that will affect 2.6 million taxpayers, as 'La Vanguardia' newspaper revealed on Monday morning and sources from the Department of Economy and Finance confirmed to the Catalan News Agency (ACN). 

The reduction in IRPF is proposed for next year, as part of the law which will accompany the annual budget, and would mean a cut of one percentage point in the first tax bracket, from 10.5% to 9.5%. 

The measure would benefit citizens with annual incomes equal to or less than €33,000. 

The economoy department's proposal also includes ensuring possible salary increases due to inflation do not translate into an increase in taxes. 

In most of Spain, 50% of personal income tax is decided by the Spanish government, while the other 50% is set by the governments in Autonomous Communities, such as Catalonia. 

The implementation of this reduction in IRPF would place Catalonia among the average in Spain, the same as Castile and León, Castile-La Mancha, Cantabria, Murcia, and Aragon. It would be above Madrid, Galicia and the Canary Islands – which have 9% – among others.