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No more tourist tax to subsidise purchase of electric scooters

One million euros of aid was announced

Aid for buying electric scooters was approved in April 2023. | Gemma Marchena

| Palma |

The Balearic government will not allocate further tourist tax-funded aid for the purchase of electric scooters and bikes.

In April 2023, a month before the elections, the previous government approved the allocation of one million euros to subsidise purchases. These subsidies were to come from tourist tax revenue.

The then government justified the subsidies on the grounds that they would further promote green and sustainable transport and would assist with a calming and decongestion of traffic. There was a good deal of criticism, both for the principle of the subsidies and because tourist tax revenue was being used. The ARCA heritage association filed an appeal against the aid, claiming that this was not an appropriate use of the tax and that it would add to the sense of insecurity that these vehicles create.

The Partido Popular government, which is retaining the tourist tax, has said that purposes for which the revenue will be used will be revised. Essentially, it will be for projects related to tourism and the environment.

The original text for the 2016 sustainable tourism tax bill set out five purposes. While these were, broadly speaking, for tourism and the environment, the purposes became more blurred and were added to by provision for social housing.

The government will consider use of the revenue for energy transition projects, but it has certainly ruled out any being used for social housing. While electric scooters and bikes fall within the general policy for energy transition, the government doesn't believe that tourist tax funding is appropriate.

Requests for subsidies that have been made will continue to be processed and paid, but there won't be any further aid. The government is also mindful of the fact that public transport companies have been banning electric scooters and bikes from buses and trains because of safety concerns.

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