The finance minister Catalina Cladera said move is needed to plug the gap in investment from Madrid.

In parliament, the finance minister Catalina Cladera has elaborated on responses on taxation policy given by President Armengol (and as reported yesterday).

In respect of increases to income tax for higher earners, this is to apply to the current year as well as 2016. While most tax measures are to come into force on 1 January, those related to increased income tax and also to Wealth Tax are to apply from 31 December, meaning that the next tax declarations to be made will have to include the current year.

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On income tax, the increases apply only to those earning 70,000 euros or more, while the Wealth Tax on assets of between 700,000 and 800,000 euros will kick in from the last day of the year.

Cladera explained that the law for the budget allows such an apparently unusual arrangement and said that the tax increases for 2015 will allow the government to compensate for the fall in revenues from national government.

The revenue realised from the Wealth Tax for 2015 is estimated to be around 21 million euros, which is equivalent to the cost of introducing the social income scheme for the most needy in 2016.