Palma.The Balearic Business Confederation and the Chamber of Commerce have been warning the Balearic government against introducing any new taxes, but yesterday, the cabinet decided to ignore their pleas and bring in the new taxes.
The so called green taxes are aimed at the car rental sector, hyper markets and the plastic packaging.
The government claims that the three new taxes will raise an extra 70 million euros per year but captains of industry beg to differ.
Josep Oliver, the President of the Balearic Business Confederation, who recently made a public plea for no more taxes, said yesterday that after the increases in VAT last September, the new taxes will only reduce the targeted sectors' ability to compete with the national and international market.
The taxes will mean that extra costs will be passed on to the consumer and, at a time when consumer confidence is at an all time low, the business community fears that the taxes will cause further damage to business.
For example, the new tax on hire cars will be charged at rates between 3.00 and 7.50 per day (depending on CO2 emissions) and these charges will be passed on directly to holiday makers, making weekly car rental in this year a whole lot more expensive.
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