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New 'green' tax for car rentals in Mallorca

Government to bring in environmental taxes as part of 2013 budget

featured in News & reviews Author Jane Leitch, Mallorca Reporter Updated

The Spanish government have announced a new 'green tax' which will directly affect tourism and car hire in Mallorca. The rate of tax charged will be scaled according to the vehicle's emissions.

The tax has been announced despite the abolishment of a similar 'ecotax' in 2003 that also taxed tourists as it became clear that it had a negative impact on the tourism industry.

Speaking at the World Travel Market in London, the director of the Spanish Tourist Office Enrique Ruiz de Lera said they do not agree with the 'green tax', nor do they agree with the recent VAT increase in tourism from 8% to 10%. The main argument that stands with this 'green tax' is that it is 'attacking' the tourism sector which has until now been fairly stable in Mallorca and the Balearics despite Spain's economic crisis.

The 'green tax' will impose taxes on large stores and supermarkets who can cause 'environmental damage'. This includes the pollution generated by consumers travelling to and from their stores by car. The environmental tax will also apply to excessive use of water and non-recyclable drinks containers. The tax per container will be around 5-8%.

The total to be raised by these taxes is in the region of €135 million. The new taxes and rises in current taxes are to try and cut out excess consumption and to help raise money in order to pay off Spain's debts.