The Balearic federation of local authorities (FELIB) has agreed to meet representatives of the car-rental sector and regional government in September with a view to seeking an end to the practice of vehicles being registered for tax in other regions of Spain where road tax is cheaper.
The federation's president, Vicent Marí, considers it unfair that cars use resources on the islands but that taxes are paid to a municipality on the mainland. He has pointed the finger at large agencies in particular, with the loss of tax revenue to Majorca being around three million euros. Palma is a municipality which is affected significantly by this, given that the large agencies have fleets of cars at the airport. An average car in Palma is liable to 68 euros when, for instance, the Madrid municipality of Torremocha de Jarama charges half this amount.
Marí says that the problem is widespread across the islands and that were the practice to be stopped, this would improve town hall finances.