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Palma.—Representatives of the food, drink, distribution and recycling sectors claimed yesterday that a family of four which consumes just four litres of water a day will be paying 100 euros more a year.

In the case of tins of drink, the price increase will be one of 9 percent per unit, meaning that families on average will be paying an extra 400 euros a year. “Within just a short space of time, companies have had to assume a rise in VAT and other local taxes, so it's impossible that on this occasion that costs won't be passed on to the consumer” said Antonio Barrón, representing the Ecoembes recycling organisation.

All sectors - food, drink, recycling and distribution - were united yesterday in their total rejection of the new tax, saying that contrary to the government's claim of “protecting the environment”, the move was purely to help the Administration balance its books and that furthermore, the tax was unconstitutional.

The harsh words came from all sectors after representatives held a meeting with the Balearic Finance Minister and Vice President, José Ignasi Aguiló to complain that putting up prices for customers will simply weaken consumer confidence. “The only consequence of this tax will be to punish families on a budget,” the sector insisted.
Companies said that if the government didn't rethink its strategy, they would have to consider whether or not their interests lay in the Balearics rather than elsewhere.