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The reorganization of Mercedes subtracts the Basque Country 200 million in VAT

The multinational Daimler Benz changes its companies in Spain and blocks the income in Álava from that tax

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The reorganization of Mercedes subtracts the Basque Country 200 million in VAT

The Basque Country has a problem of 200 million. You have planned that income in your 2018 budgets. It comes from compensations in vat of Mercedes Benz factory in Álava. But new corporate organization of German multinational threatens to provoke that money never reaches coffers of county Council and will remain in state.

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Until last year under Basque Economic concert and financial relations between Madrid and Vitoria, Hacienda of Álava did not win for Mercedes VAT, but also lost. But now situation changes. From 2018 Hacienda de Álava will stop counting on income of importation and must return to Madrid which declares and enters auxiliary industry of multinational.

The Vitoria plant exports 90% of its production and sales abroad are made without VAT, but company must pay it to its suppliers and se to county Council, which in turn has to enter State treasury. In total, it is about 200 million, according to estimates handled by Basque administration itself, when, for example, social coverage system, basic income called income guarantee income and complement of housing, will cost for all 2018 a Total of 490 million.

Mercedes generates 3% of Basque GDP in Vitoria plant and its exports represent more than 10% of regional commercial balance. It's almost a state problem. The Mixed commission of economic concert agreed in May to establish a bilateral working group between two executives to analyse technical formulas that could give a solution on taxation of Mercedes in Álava. However, re has been no progress, for moment, to think of an immediate resolution and PNV, PSE and Basque PP have already closed an agreement to approve budgets in government. Accounts that will kick in just four weeks.

Although Congress of Deputies approved update of concert and new quota on November 23, both bilateral commission of concert, and eventual negotiations for general budgets of State continue to be stopped, conditioned, Above all, that conflict of Catalonia enters into a new phase after elections of 21-D without intervention of state.

The conflict of Mercedes represents cross of economic concert and of internal organization of Euskadi. Revenue forecasts for 2018 were closed last October 11th at Basque Finance Council and if y do not arrive as planned, Basque administrations will have to resort to debt, or cut services. If y exceed forecast, re's extra money. Those 200 million would stop collecting in Álava, as each province has its own tax system, with an independent but coordinated collection.

But all that money is n distributed between administrations and 70%-of what y enter Álava, Bizkaia and Gipuzkoa-finances Basque government. Of 200 million, 140 are incorporated into income of autonomic executive. Álava raised in total last year something more than 2 billion euros of around 13,500 that were raised between three haciendas. The Basque budget for 2018 amounts to 11,486,000,000, 3.9% more than current ones. The remainder-of total collection of 11,486 of government budget of Íñigo Urkullu-is to finance exclusive competencies of Foral deputations.

The same taxes

The multinational announced in advance to Basque institutions that this effect could be produced with new organisational scheme. Daimler Benz will pay same taxes, but Álava cannot compensate one VAT with anor. Mercedes Benz España SAU, has segregated three business units and have constituted three new companies: Mercedes-Benz Trucks Spain, Mercedes-Benz Vans Spain and Mercedes-Benz parts Logistic Ibérica. The reorganization is also produced, at a time when Mercedes Benz is going as a shot. The plant is in record production figures for third consecutive year with a forecast to take out 148,000 vehicles this year and 6% more in 2018 to 157,000 of class V and Vito models.

and that which in 2009 raised a record of regulation of employment (ERE) of suspension of day and production fell to 54,600 vehicles, lowest figure that is remembered from 38,000 of 1996. That is, problem of Basque haciendas and Mercedes is not a problem anymore. The increase in workforce in recent years, which will close 2017 with incorporation of 1,350 more indefinite jobs, makes it main industrial plant in whole of Euskadi, with almost 5,000 direct jobs and 12,000 indirect. 17% of Álava's active workers do so directly or indirectly for Daimler Benz multinational.

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