Regulations governing tourist tax posted for public scrutiny

The regulations which will govern the application of the tourist tax are now posted for public scrutiny, during which period objections can be lodged, the finance ministry announced yesterday. The regulations were published in yesterday's edition of the Official Balearic Gazette and objections can be lodged within the next fortnight. The proposed regulations on the tax, which will be levied on tourists staying in hotels and will be used to preserve the environment and improve tourism, were drawn up under the law establishing the tax. They cover everything related to the tax, which will be levied on tourists over the age of 12. The aid of the business associations CAEB and PIME will be enlisted in helping hoteliers collect the tax, which will be deposited twice a year. But although the tourist tax has been approved by the government, which says it will be introduced “sooner or later” - see article above - it has been effectively frozen by the central government, which claims it is unconstitutional. It argues that tourists are already taxed through IVA or VAT. The Balearic government will have to await the decision of the Constitutional Court before it can enforce the tax. Hoteliers have spoken out against it and it received a bad press in Germany when it was first announced.