This situation was highlighted during the Confecomerç Executive Committee session held on Wednesday, as reported by the entity this Thursday in a statement. Self-employed individuals and micro-enterprises form the backbone of the Valencian economic and social fabric, generating stable employment, revitalizing municipalities, and ensuring essential services to citizens.
However, the current context, marked by rising costs, economic uncertainty, and a high tax burden, is jeopardizing the continuity of many activities. State tax obligations are compounded by regional taxes, municipal fees, and increasing administrative complexity, which disproportionately affect commerce and the self-employed, whose economic capacity and management margin are limited. This situation is particularly concerning in sectors with irregular or seasonal incomes, which are very present in the Valencian economy.
“"With such a reality, commerce and self-employment unfairly suffer greater difficulty in maintaining activity and employment, and a lower capacity for adaptation, investment, and modernization."
Confecomerç had previously valued advances towards greater tax equity, such as real income-based contributions, but its practical application is generating liquidity tensions, tax advances, and increased bureaucratic burden, hindering the planning and stability of smaller businesses. The most direct cause of this serious situation is inflation and the non-deflation of the state section of the IRPF (Personal Income Tax).
According to 2024 data from the Tax Agency, self-employed individuals paid an average IRPF rate of 21.73% on profits, compared to the 17.31% average rate faced by SMEs in Corporate Tax. Over the last seven years, self-employed individuals have increased their average tax rate by 25%, while the increase for SMEs has been 3%, according to Confecomerç. This situation discourages entrepreneurship and generational succession, with the consequent risk of closure of businesses that are key to social and urban cohesion.
To alleviate this burden, Confecomerç has proposed measures such as regional taxation adapted to small businesses, a review of the regional section of the IRPF to favor income from self-employment and small entrepreneurs, and an expansion of regional tax deductions linked to maintaining activity, modernization, digitalization, and sustainability. They also propose specific tax incentives for self-employed individuals and businesses located in neighborhoods, urban centers, and municipalities at risk of depopulation.
Furthermore, they request flexibility and liquidity support, deferrals and installments of regional taxes with more favorable conditions, and measures that consider the seasonality of many commercial and service activities. Finally, they call for a reduction of administrative burdens and fees, as well as the real simplification of regional administrative procedures.
