THE REGIONAL government has approved a host of measures with which it hopes to save 1,057 million euros.

Some of these will have an immediate impact on expats, such as a rise in the 'healthcare cent' tax applied to the price of fuel.

This will increase the price of diesel and petrol by 2.4 cents per litre.

This meant that in the Valencia Region this week fuel prices rose to 1.37 euros a litre for petrol and 1.34 euros a litre for diesel.

However, the agricultural and transport sectors will not be affected by the rise.

Income tax collected by the regional government will also be amended with the introduction of two new brackets on the scale for those who earn above 120,000 and 175,000 euros per year.

An annual earnings limit to be eligible for regional tax deductions will be set at 24,000 euros for individuals and 38,000 euros for couples.

The regional deduction for buying a habitual residence using outside finance will be eliminated.

Stamp tax on acts formalised in legal documents will rise from 1% to 1.2%.

Together with a series of environmental taxes, these measures are expected to raise regional government income by 238 million euros per year