by Jason Moore

No-one likes tax increases but the Spanish and Balearic governments appear to be taxing the very industries which will help the Balearics leave the recession. The matriculation tax on yachts has effectively ruined the once lucrative yacht charter business in the Balearics. It is a stupid tax because it effectively causes more damage than good. The yacht charter industry has been hit hard and therefore there has been a major drop in revenue. The Balearic government has also recently announced that they are increasing property tax, which is another silly move, because the real estate market is vital for the Balearic economy. I know that money needs to be found because the Balearics are effectively bankrupt but taxing the real estate and yachting industries are very short sighted moves, to say the least. I would encourage the Balearic government to hold talks with the two industries involved. They will then discover the damage the taxes cause. I would suggest that the Balearic government should try and help the nautical and property industries rather than just making them pay more money. I do get the impression that the new Balearic government of Jose Ramon Bauza is slightly lost at the moment. Obviously, money is short but there must be other ways of raising money which will not have such a negative impact on the local economy. Think again and cut taxes rather than raising them; there is plenty at stake.

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