Fresh push for a 10% hike in Balearic tourist tax

Increase proposed during peak season and to include charter yachts

Fresh drive to increase the tourist tax. | Majorca Daily Bulletin reporter

Humphrey CarterPalma24/11/2022 16:41

Balearic President Francina Armengol’s coalition partners have presented amendments to the Government’s budget for next year with the aim of incorporating an increase in the tourist tax during the peak summer months.

Each of the partners has tabled an amendment of its own, and that of Més per Mallorca aims to achieve a 10% increase during the months of July and August.

Podemos is introducing more substantial changes to the sustainable tourist tax and is calling for the tax to be doubled in July and August and to be progressive for the rest of the year, with a maximum of 6 euros for luxury establishments. The party also wants charter boats based in the ports of the islands to be charged this tax.

Armengol’s partners have been negotiating for weeks to try to incorporate the tax hike into the budget, but the PSIB Balearic Socialist Party believes that now is not the time for a new battle with hoteliers, who will be asked to raise their employees’ salaries at a time when inflation is soaring.
Parliament is in the process of approving next year’s budget, the highest in the Balearic Islands’ history.

The government will be able to spend 7,133 million euros next year, much of which will be allocated to social spending.

The budget includes a tax increase for the purchase of luxury homes and a reduction in property transfer taxes for the cheapest homes.

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Morgan Williams | about 1 year ago

While I'm not opposed to tourist tax per se, the main problem isn't the tax itself, or the amount. The *system* is the problem. First, it's much too complicated. Different rates for class of accommodation, different times of year... It's confusing. Second, the burden of collection and accounting for it is on the accommodation itself, which adds unnecessary burden to an already burdened industry. And it's often collected in cash at check in time. Furthermore, this rather disorderly systemic chaos lends itself to all kinds of "mistakes" (e.g., overcharging/profiteering). I'd argue that it should be a much lower, flat rate amount, levied on every incoming airline or ferry ticket - year round. Like IVA. I'd wager they'd actually end up collecting far more, with better accounting for it, with much less chance of dubious misuse of the system. And the hotels and villas would be relieved of the unnecessary burden of collection and accounting, & tourists would end up paying less.

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