I

The right to quality healthcare is one of the pillars of the welfare state with which the government is firmly committed.

in the light of this assistance, there are shortcomings in its funding which lead to the need to take urgent action at this time if the service to the public is not to be desired. Appreciable form in the immediate future.

Although there is no doubt that health benefits fall within the competence of the autonomous communities-the means of which are, in addition, apart from very specific, fully transferred assumptions-the government, precisely because of this The commitment to which it was referred has decided to include in its economic policy measures to strengthen health funding.

Thus, the President of the Government presented to the Second Conference of Presidents of the Autonomous Communities a series of measures that were approved. Similarly, the subsequent Council for Fiscal and Financial Policy of the Autonomous Communities, held on 13 September 2005, approved the details of these measures, with the specification of the distribution between autonomous communities to the extent of in which the nature of each of them allowed it.

The government's proposal is a measure of economic policy, urgent and added to the current system of autonomous financing. It is not intended to alter this system (except in the technical retouches which might be essential), as this would require a long temporary process-for study and the binding of the necessary agreements-which would be incompatible with the fast acting that is demanded and intended to be satisfied.

The implementation of these agreements requires, by their diverse nature, different legal instruments that must be carried out in the most urgent way possible, given the need before it is exposed.

And as one of these instruments, through this real decree-law, two of these measures are fulfilled-the authorization of cash advances and the increase of certain special taxes-which require a standard of law. for their implementation as well as a particularly rapid action given their nature.

II

For the purposes described above, this royal decree authorizes the Minister for Economic Affairs and Finance to agree to the granting of cash advances to the autonomous communities of the common regime and to cities with a status of Autonomy, in view of the final settlement of the financing system.

According to the current system of financing, the autonomous communities of the common regime have been receiving, as a result of the definitive liquidation, 98 percent of the collection of liquid taxes. provided for in the initial budget for the financial year to which they correspond. The performance of the transferred taxes is the subject of liquidation when the final collection data is known.

Also, in relation to the Sufficiency Fund, the autonomous communities of the common regime and the cities with Autonomy Statute receive 98 percent of the amount provided for this fund, and the rest, when the final data of the adequacy fund that corresponds to them is known.

It is now intended to provide a legal instrument to achieve, if necessary, a greater approximation in the time between the financing of the autonomous communities and cities with Autonomy Statute and the increase of collection that may occur with respect to the assigned taxes.

III

Secondly, among the solutions agreed is the increase in taxation that taxes the consumption of alcoholic beverages and tobacco products. This measure is particularly consistent with the objective pursued, since it has an impact on products whose consumption can be harmful to health and therefore generators of health expenditure. As a result, such an increase in taxation produces the double effect of providing funds to finance health expenditure, while the expenditure itself is reduced to the extent that the consumption of such products is discouraged. As far as taxes on alcohol and alcoholic beverages are concerned, their tax rates are increased by 10 percent. As for the Tax on Tobacco Labours, the specific rate applicable to cigarettes is increased by 5.3 percent, while the "ad valorem" rate is increased by almost one percentage point. The 'ad valorem' tax rates applicable to other tobacco products are increased by a proportion similar to the overall increase in the taxation of cigarettes by application of the new rates. In all cases, the conditions required by Community legislation are respected.

Finally, as regards the legal figure through which these measures are approved, it should be noted that, on the one hand, these are amendments relating to the amount of the tax rates which are subject to the principle of reserve of law. On the other hand, the existence, in the context of an ordinary parliamentary procedure, of a prolonged period of time between the knowledge of the measure and its entry into force, would adversely affect its own effectiveness and could, moreover, cause distortions and speculative conduct on the market for the products concerned. It is therefore considered that the use of the royal decree-law is fully justified.

In its virtue, in use of the authorization contained in article 86.1 of the Spanish Constitution, on the proposal of the Minister of Economy and Finance and after deliberation of the Council of Ministers at its meeting on September 16 2005,

D I S P O N G O:

Article first. Authorisation of the Minister for Economic Affairs and Finance to agree on the granting by the Treasury of cash advance payments on account of the final settlement of the transferred taxes and the Fund for sufficiency.

One. In order to bring the financing of the autonomous communities and towns with Autonomy Statute closer to the actual collection of revenue from temporary taxes, the Minister of Economy and Finance is authorized to, at the request of those, and At least six months after the financial year, the Treasury shall agree to the granting of cash advance payments on account of the final settlement of the transferred taxes and the Fund for sufficiency.

These advances may amount to up to 4% of the calculation basis used for the initial fixing of the deliveries to account for temporary taxes and the Fund for the sufficiency of the financial year in which the request, as set out in Law 21/2001 of 27 December, on the tax and administrative measures of the new system of financing of the Autonomous Communities of the common system and cities with the Statute of Autonomy.

Cash advances shall be cancelled at the time the final settlement of the financing system for the financial year in respect of which they have been granted is carried out.

Two. By way of derogation from the preceding paragraph, the maximum amount to be achieved by cash advances during the financial year 2005 shall be two per cent of the basis of calculation used for the initial fixing of the deliveries to be taken into account by Temporary taxes and the adequacy of the financial year.

Article 2. Modification of the tax rates on alcohol and alcohol taxes.

With effect from the entry into force of this royal decree-law, Law 38/1992, of December 28, of Special Taxes, is amended in the following terms:

One. Article 23 (5) and (6) shall be worded as

:

" 5. The Tax on Intermediate Products will be payable in the Canary Islands at the following rates:

(a) Intermediate products with an actual alcoholic strength by volume not exceeding 15 per 100 vol.: EUR 26,09 per hectolitre.

(b) Other intermediate products: EUR 43.47 per hectolitre.

6. The Tax on Alcohol and Derived Beverages shall be required in the Canary Islands at the rate of EUR 649,66 per hectolitre of pure alcohol, without prejudice to Articles 40 and 41 of this Law. "

Two. Article 26 is read as follows:

" Article 26. Tax rates.

1. The tax shall be required, in respect of products falling within its objective scope, in accordance with the following headings:

Heading 1.a). Products with an actual alcoholic strength by volume not exceeding 1,2 per 100 vol.: EUR 0 per hectolitre.

Heading 1.b). Products with an actual alcoholic strength exceeding 1,2% vol. and not exceeding 2,8 per 100 vol.: EUR 2,75 per hectolitre.

Heading 2. Products with an actual alcoholic strength by volume greater than 2,8 per 100 vol. and with a Plato grade of less than 11: 7,48 euros per hectolitre.

Heading 3. Products with a Plato grade not less than 11 and not more than 15: 9,96 euros per hectolitre.

Heading 4. Products with a Plato grade of more than 15 and not more than 19: EUR 13.56 per hectolitre.

Heading 5. Products with a Plato grade of more than 19: 0,91 euro per hectolitre and per grade Plato.

2. For the purposes of the above paragraph, a tolerance of up to 0,2 degrees shall be permitted in the determination of the Plato grade. '

Three. Article 34 is worded as follows:

" Article 34. Tax rate.

Without prejudice to Article 23, the tax shall be required for the following tax rates:

(a) Intermediate products with an actual alcoholic strength by volume not exceeding 15 per 100 vol.: EUR 33,32 per hectolitre.

(b) Other intermediate products: EUR 55,53 per hectolitre. "

Four. Article 39 is worded as follows:

" Article 39. Tax rate.

The tax shall be required at the rate of EUR 830.25 per hectolitre of pure alcohol, subject to the provisions of Articles 23, 40 and 41. "

Five. Article 40 (2) (a) and (b) and Article 40 (4) shall be amended as

:

" 5. Type of lien. The tax shall be required at the rate of EUR 726,54 per hectolitre of pure alcohol. Where the tax is payable in the Canary Islands, the rate shall be EUR 565,66 per hectolitre of pure alcohol. The provisions of this number are without prejudice to the provisions of Article 41. "

" 4. Introduction of derived beverages manufactured in other Member States by small distillers.

The rate applicable in respect of derived beverages manufactured by independent producers located in other Member States which obtain an annual production not exceeding 10 hectolitres of pure alcohol shall be 726,54 euro per hectolitre of pure alcohol. Where the tax is payable in the Canary Islands, the rate shall be EUR 565,66 per hectolitre of pure alcohol. '

Six. Article 41 is worded as follows:

" Article 41. Harvester regime.

When derived beverages obtained by hand-made distillation are used directly from the factory to the consumption of the harvesters, in the form and with the conditions to be established, the type Applicable tax shall be EUR 195,98 per hectolitre of pure alcohol. Where the tax is payable in the Canary Islands, the rate applicable shall be EUR 151,86 per hectolitre of pure alcohol. The application of these rates shall be limited to the quantity of drink equivalent to 16 litres of pure alcohol per harvester per year. '

Article 3. Modification of the tax rates of the Tobacco Labors Tax.

Article 60 of Law 38/1992, of December 28, of Special Taxes, will be worded as follows:

" Article 60. Tax rates.

The tax will be required according to the following rate:

Heading 1. Cigars and cigarillos: 12.71 per 100.

Heading 2. Cigarettes: They will be taxed at the same time as the following tax rates:

a) Proportional type: 54.95 per 100.

b) Specific rate: EUR 4.20 per 1,000 cigarettes.

Heading 3. Bite to Liar: 38.46 per 100.

Heading 4. Other tobacco products: 22.87 per 100. "

Single end disposition. Entry into force.

This royal decree-law will enter into force on the day of its publication in the "Official State Gazette".

Given in Madrid, 16 September 2005.

JOHN CARLOS R.

The President of the Government,

JOSE LUIS RODRIGUEZ ZAPATERO