Sánchez announces an exemption in personal income tax and corporation tax for public aid for the destruction of homes on La Palma

La Palma (Canary Islands)

Pedro Sánchez took part in the meeting of the Steering Committee of the Special Civil Protection and Emergency Plan for Volcanic Risk (PEVOLCA) in La Palma to announce the approval of a measure so that all public aid for the destruction of homes or buildings on the island will not be taxed in personal income tax and corporation tax.

"The institutions must listen to the affected sectors and citizens of La Palma; that is why we approved the tax exemption for public aid related to the destruction of homes and buildings", Sánchez stressed after the PEVOLCA meeting, which he attended together with the president of the Canary Islands, Ángel Víctor Torres, the president of the City Hall of La Palma, Mariano Hernández, and the Government delegate in the Canary Islands, Anselmo Pestana.

The President of the Government of Spain took advantage of his visit to the island to meet with representatives of the banana sector, which was particularly affected by the volcanic emergency, and to reaffirm the Government's commitment to the workers on La Palma. In this regard, Sánchez said that the Ministry of Defence will coordinate a transport service through the Spanish Navy that will allow the residents of the town of Tazacorte to travel to work in the different banana plantations on the island.

"The Government has made the transport of goods from the island of La Palma to the mainland mandatory. This shows that we are giving the greatest number of answers to benefit the citizens of La Palma", the head of the Executive indicated.

Sánchez also highlighted the fundamental role of the Employment Plan for the island, with more than 60 million euros to guarantee opportunities, employment, stability and certainty for the inhabitants of La Palma. In addition, the president pointed out that 551 workers are already benefiting from the specific ERTE model established for the island and a total of 1,550 people have completed the procedures to take advantage of it.

Plan to strengthen social services and tourism

Sánchez also announced the granting, in the next few days, of a direct subsidy to the Canary Islands of 5 million euros for social services; in line with the implementation of an online system, in operation since 2 November, to apply for aid for the damage caused by the eruption.

At the same time, the Government is working on a plan in terms of tourism, which will subsidise 100% of the fees for the use of airport infrastructures for all passengers during 2022. "We will spare no resources in tackling the task of rebuilding La Palma, neither now nor in the future," said the President of the Government of Spain.

225 million euros for the recovery of the island

In his sixth visit to La Palma since the volcanic emergency began, the head of the Executive reiterated the commitment and solidarity of all Spaniards with the island and reviewed the measures of the 225 million euro Special Plan for the Reconstruction of La Palma, aimed at the island's recovery.

The President of the Government of Spain specified the figures of the package of measures underway for the reconstruction of La Palma. Sánchez confirmed that the regional government will next week receive the payment, approved by the Council of Ministers, of 18.8 million euros in direct aid for agriculture and fisheries.

This aid is in addition to the compensation paid to date by the Insurance Compensation Centre, totalling more than 21 million euros to cover urgent needs in the areas of housing, vehicles, commerce and industry.

Non official translation