Coach business activity was all but paralysed for three months. | Pilar Pellicer

The Balearic Transport Federation has called on town halls to reduce road tax. The employers' federation is seeking a cut of 50% for as long as the crisis caused by the pandemic lasts or a minimum of 25%, which would correspond with the period of lockdown from March and the paralysis of much business activity.

The federation says that, on average, road tax equates to 4.6% of town halls' income. It notes that there is a great deal of disparity between rates charged by town halls. The differences are evident within the Balearics and by comparison with elsewhere in Spain. In Santa Cruz in Tenerife, for example, 34.08 euros is the charge for a vehicle with up to 11.99 taxable horsepower, while in Palma the rate is precisely double - 68.16 euros.

In the Balearics, Palma and Formentera have the highest road tax for all types of vehicle, followed by Ibiza, Mahon, Manacor, Inca and Alcudia. For a coach with fifty seats or more, 296.60 euros is the rate in Palma and Formentera. Campos charges the least - 183.61 euros.

As well as a reduction in tax, the federation wants to see harmonisation of the rate so as to remove discrimination.