Palma.—Hire  car company owners in the Balearics have asked the local  authorities to reduce their tax grade level, claiming the service they provide should be  classed under the tourism umbrella, and as such benefit from the tax reduction allocated to tourism service providers.
During a parliamentary session, company owners stated that reducing their tax payments from the current 21 percent to 10 percent would lead to better competitiveness levels in the sector, arguing that seven out of every ten people who search for rent- a- car services are tourists.

Jaime Martinez, the Balearic Minister for Toursim, agreed the trade is an integral part of the local tourism sector, but stressed that even though the ministry has included hire car companies under the tourism umbrella in the new  tourism law, the decision to reduce tax payments depends on the central government in Madrid.
Martinez also vowed to put an end to illegal  car rental companies which offe


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