Finance minister Rosario Sánchez explained during a radio interview on Tuesday that the 2020 budget will be "prudent". This will reflect the "moderation" of the Balearic economy and uncertainties regarding financing from Madrid and levels of tax revenue from property transfers. The latter two have already required a downward modification in 2019 government spending.
There is, as Sánchez noted, a 177 million euros gap that is a specific consequence of the difficulties that her namesake - Pedro Sánchez - is having in forming a government and therefore approving a new state budget. On property transfer tax, she observed that revenue from the sale of properties fell by 40 million euros over the first five months of this year. The general scenario is not positive in that there was a ten per cent fall in property sales up to June.
The minister added that there are no plans for introducing new taxes in 2020 and nor are there plans to cut any existing tax rates. Although hoteliers have complained about a fall in bookings this summer, the tourist tax rates will stay as they are. "We are not intending any possible flexibility with the sustainable tourism tax next year."
Government forecasts for economic growth have been cut from 2.7% to 2.2% at most. Despite this moderation, Sánchez said that there will still be scope for various projects, such as railways and housing.
The minister and the government have until the end of October to present the 2020 budget to parliament. Prior to this, a decision will be needed on the spending ceiling, which for 2019 was slightly more than 5,000 million euros.
5 comments
To be able to write a comment, you have to be registered and logged in
This year I've been to Nerja in mainland Spain and I'll soon be off to Lake Garda, Italy. It's not the tourist tax that has put me off going to Mallorca every year. It's the fact I reall don't think tourists are appreciated there anymore. I'll take my money somewhere else!
Mallorca is suffering with the lack of tourist but I’ve just done a quick search on prices for August 2020 based on an average family 2+2 Mallorca price 884£ pp Egypt price 607£ pp All inclusive Turkey price 771£ pp All inclusive Can you see the problem??
Many Travelling British Holiday people have gone elswhere. They get a great deal for their money in e.g. Turkey. With the Pound /Euro rate almost at 1 to 1. The Tourist Tax is ruining a British Family 's Holiday. Many are not booking and/or cancelling Majorca.
We visit Mallorca twice a year for 2 weeks at a time, we have paid the T/T since it was introduced and I have seen NOTHING to show for .t Nothing for the tourist has changed for the better. It is about time that we the tourist who are the lifeblood of Mallorca say enough is enough show us what we are paying for or we WILL take our money else were.
I am travelling to MAJORCA FOR 21yrs and I love the Island and the people I am sad to say this is my last September the holiday tax is costing us over 100e this holiday we can not afford this next year could the GOVERNMENT please listen to me I am the best supporterror of Majorca please please listen all bookings are down because of the TAXIS thank you for readding my letter.😢