Change of direction over car hire tax

THE Balearic government is now studying “fiscal measures” to ensure that the controversial tax on hire cars will not be passed on to the tourist.
This latest twist to the saga was announced yesterday by deputy leader Rosa Estarás.
The government was taken by surprise at the opposition to the tax, which it claims is to weed out the illegal companies and penalise the “unfair competition,” and has been forced to backtrack several times. The tax, about five euros a day plus 0.03 euros per kilometre, was to have been introduced at the start of the season. Now the government says after the season. The money raised was to have been used to fund the health service. Now it is for “general purposes.” Opposition parties and foreign tour operators slammed the tax, claiming that it was like the notorious “tourist tax” and would keep people away. Now, it seems that the government has listened to them and is taking steps to ensure that the tourist will not be affected. Estarás said that she was sure that the car hire sector would accept the tax, and that talks would continue before it was finally introduced.