Government parties want a raise
Two of the parties in the Balearic coalition government – Més and Podemos – are seeking a tourist tax increase next year and I want that to be reflected in the next budget.
On the other hand, for the 2023 budget, the tourist tax item is based on 2022 revenue. The bill that Parliament approves for the annual budget should therefore include the the intention to increase the taxthe revenue from which would then apply to the 2024 budget.
The organizational secretary of Podemos, Alejandro López, affirms that this is a subject that will be discussed at an upcoming party meeting so that it is included as one of the proposals that must be negotiated within the framework of the next year’s budget. López believes that the time has come to apply a higher rate for the main season, i.e. june to september.
Més agree with the need to increase the tax, whose proposal is at an embryonic stage. There’s nothing firm yet, although one option being talked about would see the current maximum rate (four euros per person and per night for four-star superior and five-star accommodation) increases to six euros. Lower fares would likely also increase accordingly.
Both parties believe that an increase in the tax would send a clear message to the inhabitants of the Balearic Islands, who have had the feeling full this summer. They believe that this increase would help to contain overcrowding during the summer months and would also discourage “excess tourism”.
The third party in the coalition and main partner, the PSOE of Francina Armengol, has not yet spoken of an increase. The Més and Podemos positions seem to have an eye on the election next May and also on the agreements between the three parties, assuming that they are able to continue their coalition after the election. It should be remembered that the establishment of the tourist tax in 2016 was a negotiating instrument of the Més during the formation of a government in 2015; The PSOE had never particularly wanted the tax.
As for an option to increase the tax between June and September, that would create an additional element to the current system. The higher rates apply between May and October, while the lowest rates (a quarter of those in “summer”) are from November to April.
When it was introduced in July 2016, the highest fare in the summer was two euros. Summer fares were then doubled in 2017.