Judges have blocked the first tourist tax in the Canary Islands just a day after it was implemented, giving a boost to British visitors.
Reports from Gran Canaria, where the first tax of its kind was introduced, say that Mogán Municipality Council’s new levy has been suspended by the Canary Islands High Court of Justice (TSJC).
According to Canarian Weekly, the tax came into effect on Tuesday, March 11 and required guests to pay €0.15 each night they stayed in the area of Mogán.
But on Wednesday, March 12 the TSJC sided with opponents to the tax, who argued it was “poorly written” and “confusing”.
The Federation of Hospitality and Tourism Entrepreneurs (FEHT) battled the tax, which was approved by city officials last month.
And judges turned it over temporarily, as Judge Francisco José Gómez de Lorenzo-Cáceres said it created “an inappropriate and disproportionate burden” and should have been written into a formal law.
FEHT claimed that the tax would create an administrative nightmare for hospitality businesses.
It was ratified during a meeting on Friday, February 28 when officials decided that the tax would apply to those staying in hotels, vacation homes and more tourist accommodation buildings.
The owners of properties where the tax is applied would then pay the fee to the city council.
However, reports claim that the TSJC decision to suspend the tax was made without hearing Mogán Municipality Council’s representations.
City officials now have three days to defend the law and lift the precautionary suspension.
A Mogán Municipality Council spokesperson said: “In view of the precautionary suspension of the Fiscal Ordinance Regulating the Fee for Services and Activities Derived from Tourism Activities and the Sustainability Obligation, the Mogán City Council is awaiting the formal ruling of the Canary Islands High Court of Justice (TSJC), which it learned of through the media.
“The Mogán Municipality Council has always been aware that this circumstance could occur, and therefore, when the local government is duly notified, it will appear before a judge or court within three days to defend the aforementioned ordinance and to ensure that the precautionary suspension measures can be lifted.”