The purpose of the tax amnesty is to introduce a new case of 100% tax relief (that is a total exemption) in cases where exceptional situations occur that cause economic damage to the sector.
The measure was adopted one day after the announcement of the implementation of the so-called Plan Resiste (Resist Plan) with aid worth 340 million for the economic sectors most damaged by the current crisis. The decision entailed a tightening of the time restriction established on 5 January and will remain in force for at least the next two weeks. After those 14 days, the cessation of activity could be extended or terminated in order to return to one of the previous phases of limitations, returning to the capacity restrictions.
Consequently, the proposed amendment to the municipal ordinance seeks to adapt to these possible situations, extending the validity of this tax amnesty for the watchmen “until 30 June 2021” or, where appropriate, until “the regional regulation that limits the capacity of the terraces by 50%” is suspended. However, it also specifies that this exemption will be applied “automatically” from 20 November last year. In these cases, the city council itself will be responsible for processing the reimbursement in proportion to the number of days during which the restrictions are extended.
In this way, the proposal specifies that the purpose of the modification is the incorporation of two new sections in the articles of the ordinance so that “measures of suspension, restriction or temporary limitation can be applied in the application of the fee for temporary occupation of public land with tables and chairs for lucrative purposes, applying a 100% reduction of the fees in situations of emergency, general public health, health crisis, pandemics or similar cases”.
And it is added that “this is intended to mitigate the negative economic effects of any extraordinary situation that involves the adoption of agreements by the competent authorities, which establish limits on mobility, reduction of tables and chairs or capacity in the premises, among other limitations, which affect those activities subject to the payment of the fees established in this ordinance”.
On 15 December, the proposed modification was initially approved by the Board of Governors, and at the same time, a new aid package was launched, amounting to 490,000 euros, aimed at the hotel and catering industry.
