The former leader of the Las Palmas employers' association, Agustín Manrique de Lara y Benítez de Lugo, one of the most authoritative voices in the islands' economic fabric, proposed an ambitious change in the Canary Islands Parliament this Monday: the abolition of the AIEM (Tax on Imports and Deliveries of Goods in the Canary Islands), a measure demanded by tourism companies in southern Gran Canaria. This marks a significant shift in his long-standing position. For years, as president of the Gran Canaria Business Circle and the Canary Islands Business Confederation, he defended the AIEM as a valid instrument for protecting local industry in a geographically fragmented environment with obvious logistical difficulties, such as the Canary Islands.
He called for acting "outside the box" and boldly to build a new fiscal model that expands the middle class and modernizes the archipelago's economy. In his opinion, this instrument was originally designed to protect local industry, but in practice, he warned, makes living costs more expensive for Canarians, penalizes e-commerce, and hinders the competitiveness of key sectors such as tourism and distribution. In this regard, Manrique de Lara noted with particular concern its impact on the import of materials for hotel renovations in areas like Maspalomas, the epicenter of the Canary Islands' main economic engine.
In contrast to the rigid tax structures of the past, the former president of the Gran Canaria Business Circle advocates incentivizing new industries and activities, with special attention to the transition toward a digital and inclusive economy: so-called Industry 5.0. To ensure the viability of Canarian industry without resorting to the AIEM (Spanish Tax and Customs Administration), he proposed alternatives such as direct tax breaks for companies that consume local products.
Another key focus of his appearance was his defense of a tax framework focused on people, not just businesses. He therefore called for a reduction in personal income tax and corporate tax, especially for strategic groups such as young people under 26 and workers over 52. This measure, he explained, would help reduce the average income gap between the Canary Islands and the peninsula and boost the spending power of a "very narrow" and shrinking middle class.
For the non-capital islands, he proposed applying a reinforced tax incentive multiplier, thus recognizing their structural uniqueness. He also proposed exempting self-employed workers from the IGIC (Income Tax) up to a certain turnover threshold, as a direct way to formalize the economy and reduce informal activity, which remains one of the major outstanding issues in the Canary Islands' economic system. Manrique de Lara's proposal marks a turning point in the debate on the REF (Referential Tax on the Reduction of Income): a call to review its foundations with an integrative, modern vision adapted to the islands' structural challenges. A roadmap to reactivate the economy from the ground up and with a clear view toward the future.
