CHAMBER OF COMMERCE WANTS MATRICULATION TAX SCRAPPED

THE President of the Majorcan Chamber of Commerce, Joan Gual de Torrella, will this morning ask the Congress of Deputies in Madrid to scrap the unpopular and discriminatory 12 percent matriculation tax levied on yachts of over 8 metres in length.

Spain is the only country in the European Union to charge the matriculation tax and, despite the Balearics' attraction to the sailing community, the global charter yachts over 15 metres in length refrain from using the region because of the fiscal threat denominated “Excise Duty on Certain Means of Transportation”, applied only in Spanish territorial waters. Not outside them, nor within other European regions.

This causes significant losses of high-level tourism revenue and, what is worse, yachts and yacht owners stop using our islands for maintenance and repair services.

Guel de Torrella will explain to the Congress of Deputies that, despite the 19.5 million euros which are raised by the tax, it is restricting the charter industry which could be generating an estimated 1'000 million euros per year, attract 600'000 nautical tourists and create 41'000 new jobs.

The Chamber of Commerce boss will also underline that the tax is significantly hampering the Spanish and Balearic nautical industries from competing on a level ground with other popular sailing destinations in Europe. The nautical industries in France and Italy, for example, which do not charge a matriculation tax, turn over nearly ten times the amount of Spain, according to Gual de Torrella who today intends to push ahead for either the total scrapping of the tax or at least a reduction. He said yesterday that the combination of the high taxes charged for the purchase of a yacht in Spain and the matriculation tax, adds an extra 30 percent on the cost of purchasing a yacht. “For most other countries in Europe, the nautical industry is considered a vital part of the tourist industry, attracting high spending quality tourists, but here in Spain, the fiscal pressures are preventing the charter industry from flourishing and is also turning yacht owners away,” he added. “Balearics ports are mere car parks for yachts now,” an industry source said yesterday. “Once the season starts, they all head off, out of Spanish waters, on charters in other yachting-friendly destinations.”