The central administration in Madrid raises a record £250 million every year in the Balearics through its tax on fuel. The report comes at a time when Spanish farmers and truckers are planning to follow their European counterparts and organising protest action against the high fuel prices. About £200 million comes directly from the tax on fuel with a further £50 raised through VAT or IVA. £250 million is more than the city council's total budget for the year. The Balearics are one of the provinces in Spain where the government raises the most money through the tax on fuel. Like in Britain so far the government has refused to reduce the level of taxation. But naturally, it is not just motorists who have cause to complain. The Palma airlines are really feeling the pinch and some are planning to raise the price of their fares. Gonzalo Pascual, President of Palma-based Spanair said “the fuel prices at the moment are exceptionally high. They are brutal. We want the government to take some form of action.”

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