Terrace space has expanded in Palma. | Archive

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Mayor José Hila has announced that bars and restaurants in Palma will be exempt from terrace tax for the whole of 2021.

At a Wednesday press conference, Hila explained that a budget surplus of 37.3 million euros from 2020 will be allocated to urgent aid. By not charging the terrace tax, the town hall will lose 1.8 million euros of revenue, but this will be offset by using the surplus.

The mayor noted that the terrace tax hasn't been charged since last March. "For almost two years, there will have been expanded terraces without any payment. This has been a great help."

Asked about the government seeking town hall assistance in enabling terraces for establishments that don't have them and increasing the space for existing terraces, Hila replied that no such request had yet been sent to the town hall. He observed that the number of terraces in Palma has doubled over the course of the pandemic to around 2,200. Many places which never had terraces "can now have one". Palma, he suggested, "has made an effort that few town halls have".