Palma31/03/2018 00:00
A steady flow of people are getting upset over the tourist tax in the Balearics and the fact that it will double during peak season. To start with, central government cutbacks have placed an onus on the need for regional authorities to find new revenue streams and the tourist tax is one of them. And there are currently 17 countries in Europe which charge tourist taxes in various forms - including the United Kingdom.
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So the Balearics think that just because they are short-changed by Madrid,they will fleece the tourist for every cent they can get out of them,sooner or later that attitude is going to end in tears.
To create wealth money needs to circulate quickly round the business of the local econony - and each business pays its tax to the government and spends the rest elsewhere - the money-go-round of happiness. Removing a slice of that money in tourist tax before it can be spent stifles the economy, it does not strengthen it.