A move to increase an unpopular tourism tax in Spain during the peak summer months could be scrapped. The government previously announced an increase of the Sustainable Tourism Tax (STT) in June, July and August to mitigate the environmental impact of tourism in the Balearic Islands.
However, the centre right minority Balearic government is now negotiating with the far-right Vox party to remove the increase. Although they are yet to reach an agreement, local sources suggest the fiscal issue has faced rejections in regional government. The STT, which is not paid in January or February, is a tax on holiday vehicles and overnight stays in tourist accoomodations to fund environmental conservation and sustainable tourism initiatives. The Balearic Islands government recently proposed to increase the tax by between 66% and 200% during the peak summer months.
The lower accomodation rate will rise from €1 to €2.50 per night. The higher rate will go up from €4 to €6 per night, and the tax for cruise ship passengers will increase from €2 to €6 per night.
The measures against illegal tourist accomodation could also see an increase in penalties up to €500,000, as reported by the Majorca Daily Bulletin.
It was also proposed to increase the tax on holiday vehicles depending on emissions and time spent on the islands.
The tax could reach €85, but it has been reported that Balearic Island-based rental companies will not be affected by the change.
The money raised from the tax is used to support research, training and job creation in the off-season. A part of the revenue is also allocated to social housing projects.
There are now moves in local government to remove the increases from the decree of tourism control measures.
Those that oppose the tax increase hope to focus more on the control of illegal supply and the prohibiton of tourist accommodation in multi-family buildings.
However, Jaume Bauzà, the Regional Minister of Tourism, Culture and Sport, defended the need to increase the STT yesterday. This was despite the fact that it “does not regulate tourist flows’ except in the case of cruise ships”.
