The Popular Party regional premier in Extremadura, José Antonio Monago, announced on Tuesday his intention to lower income taxes, which would affect about 90 percent of the residents in his region.
The measure would affect all those who earn 24,000 euros or less a year. "This is the majority of taxpayers in Extremadura," he said, adding the move would benefit around 430,000 taxpayers.
Monago, a rebellious PP baron who has come out against Prime Minister Mariano Rajoy's deficit sharing proposal, explained that the drop can be achieved by modifying tax brackets in the region.
The PP leader, whose government has the support of the United Left (IU) coalition, made the announcement during a state of the region address in parliament. He vowed that his government would be the first, "after five years of tax hikes imposed on citizens, to drop taxes in Spain.
"We are going to begin a new and different era in Extremadura," he said.
Other measures he promised to present in September include a stimulus package for businesses and new rules to simplify administrative procedures.
"Budget stability allows us to also establish fiscal benefits for all business activities in order to favor investment and employment," Monago said.