No plans to introduce one-cent increase on fuel tax

THE Balearic Government has ruled out adding one cent to the fuel tax to help finance the health service.
Lluis Ramis de Ayreflor, the Balearic minister for economy and taxation, said yesterday it is not considered an appropriate measure, taking into account the already high price of crude oil and the current level of inflation. He added that the Balearic Government will not be including this measure in its manifesto for next year's regional elections.
The Minister said that there will be only one change related to taxes in the next budget, which will be presented on October 26, and that will be the reduction of the inheritance tax burden. The Balearic Government will not include the fuel tax measure which they were considering applying last year to aument the financing of the health service on the islands. They decided to reject it after the reaching an agreement with the central government at the end of 2005 for the financing of the health service. Ramis de Ayreflor has said on repeated occasions that, taking into account the current economic situation, it is not appropriate to apply a new tax which could have negative effects on the economy of the islands and will certainly draw protests.