Palma.. The Balearic government has approved an urgent package of tax incentives to stimulate economic growth and jobs in the Balearics to be made legislation by the end of the year.
The local tax laws will mean that inheritance tax won't be imposed on the highest incomes over 700'000 euros which would mean income for the Treasury of 23 million euros.
The opposition parties said however that it was totally unacceptablethat the measures were not being debated and approved in Parliament, but Partido Popular spokesman Rafael Bosch said that the Socialists were not in a position to lecture as they had not even produced a budget for 2011 but had merely rolled it over from the previous year without seeking Parliamentary approval.
The new tax incentives will mean that those wanting to set up a business will have to pay just half the amount demanded now and that tax on sums of money being passed from father to son during their lifetime will also be halved if the amount is to be used to set up new businesses.
Tax on property will similarly be lowered if the building is to be used as a business centre or office.
Tax exemption will remain for non-profit making organisations who organise raffles for social need. However, this will only be in cases where the prize does not exceed 2'000 euros and where ticket sales do not exceed 15'000 euros.