The Balearic government has decided to make the cost of school books tax deductible. It is also planning tax relief for pensioners over the age of 65, and incentives for repairing estates in protected area. The law which accompanies the budget has to be approved by parliament. The tax relief on school books applies to those purchased for children aged between three and 18 and allows up to 50 per cent of the total cost of books with limit of 8'000 pesetas. The amount of the deduction will depend on family income. The Balearics is the first community to introduce this form of tax relief, and will cost the government between 500 and 700 million pesetas.


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