Dear Sir
WITH everything in the Press recently, not least letters to the Majorca Daily Bulletin on the proposed tax for hirers of rent-a-cars on the Island, it is evident that no-one likes or wants to pay more. Unless I have misunderstood reports, this all originated from some rent-a-car firms using a loophole in the VAT system, whereby they could bring cars here, being exempt from VAT in car-hire use, and then sell on with this saving. That the local government chose to impose a local tax through users/hirers, one presumes this tax will go into local government coffers, as opposed to raising a VAT charge which would go to Madrid. If there were not VAT benefit, those cars would not be brought here, less cars would enter the Island, etc. However, once the VAT was put on rent-a-cars, operators would still increase their prices to cover the extra cost, but it would not seem such a direct imposition on individuals renting. Rent-a-car here, for as long as I can remember, has always been ridiculously cheap compared to just mainland Spain, let alone Northern Europe from where the bulk of tourists visiting Majorca come. The main problem for Majorca, for too many years, is that many things have been too cheap, noticeably recent all-inclusive hotels, creeping into selected bars next year (to the further detriment of others), and car hire has been yet another example. All the Island ends up with is more and more “bodies” coming here (and more cars on the road, etcetera) with less money spent per person. Something needs to change.
Graham Phillips, Palma de Majorca


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