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Taxing issue

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Spanish Prime Minister Mariano Rajoy launched a scathing attack on the tourist tax which the Balearic government wants to introduce for next season. Rajoy said in Palma that the tax sent out all the wrong messages to visiting tourists and indicated that it wasn’t a good idea because in the long run it could be very negative for the Balearic tourist industry. Wise words from the prime minister and to some extent he is right on every point ... but one. The reason why the Balearic government has been forced to introduce the tax is because of the severe lack of funding for the islands from the central administration in Madrid ... yes the government which Rajoy administers. The islands pay far more in taxes than they receive in return from Madrid. The local authorities have made it clear that as a result of  this state of affairs they have been forced to find alternative types of revenue raising taxes. Hence the tourist tax. Now as I have said in this space before, the tourist tax is not the best idea and it will probably hit the tourist industry, but providing that the money is spent on improving tourist resorts I can see the vast majority of holidaymakers paying the surcharge with little problem. I suspect that if Rajoy agrees to sort out the necessary funding for the islands then the tax will be nicely shelved. But it is rather rich that the Spanish prime minister comes to Palma and criticises the local government for a tax which he has indirectly caused.

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