Taxing day for Balearic government

Representatives from the car hire sector, hyper markets and the packaging business will be in parliament today to listen to the Socialists call on the government to scrap the three taxes which are due to come into affect next month.

Yesterday, tourist industry bosses in Madrid waded into the debate rejecting the increase in the taxes, especially on hire cars.
From the UK, the travel association ABTA has urged the Balearics to scrap a new tax that could add 50 euros (£43) a week to car hire.
The government plans to introduce a tourist tax on vehicle rental this April of between three and 7.5 euros a day, depending on CO2 emissions.
The authorities say it will raise up to 15 million euros a year for regeneration projects, but critics say it is unfair and ill thought out.
The islands have had a tourist tax before – raising more than 10 million euros in 2002/03, but the Association for British Travel Agents said they can be damaging.

Eco-tax dip
A spokeswoman pointed out that British and German visitors to the Balearics dipped in 2002 as a result of the so called “eco tax”.
Opposition Socialist leader, Francina Armengol, claimed yesterday that if the taxes are introduced, they will make the Balearics the most expensive region in Spain and families will see their household bills rise by as much as 500 euros per year because these taxes will hit visitors and residents alike.

The government has said that milk will be exempt from the packaging tax, but all other goods will be while the large hyper markets will also have to pay higher taxes and all these extra costs will be passed on to the consumers, whose confidence right now is at a near all time low.

However, last week the government made it clear that it intends to push ahead with the taxes on time, they will not be postponed until after the summer, and if anyone wishes to challenge the decisions, then the government advised they seek legal help.