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Palma.—Partido Popular (PP) Government spokesman Rafael Bosch said yesterday that Finance Minister Josep Ignasi Aguiló (pictured left) has told the main business associations in the Balearics that he is considering lowering the taxes which are being demanded from companies next year. The move is not however, a complete U-turn as Aguiló made it clear that the taxes are going ahead in one form or another whether business like it or not. One particular example is the extent to which car hire companies will be affected by the imposition of new taxes.

The government is now considering demanding the tax from rent-a-car firms according to season of the year, so they will be paying more in summer and less in the low season. Another modification being studied is that the next tax in 2013 being imposed on hypermarkets and large chain and department stores may be scaled according to the number of square metres the business covers.

So far as the tax on disposable drinks containers is concerned, there appears to be little room for manoeuvre, said Bosch, and inevitably some costs will be passed on to the customer.

One thing is clear however, confirmed Bosch, the negotiations that the government has opened up with businesses at this late stage means that new taxation laws won't come into force until the beginning of April. The Official Balearic Bulletin has already published original tax proposals for public scrutiny and it is during this period that modifications will be put forward for approval by government and subsequently Parliament. Bosch said that public services will remain funded despite the delay in new tax collection thanks to “interim measures” put in place by the Ministry.