Mallorca fuel VAT cut to 10% sought by Balearic MPs

Mallorca, in Spain’s Balearic Islands, could see fuel taxed at 10%: the regional parliament is calling on the Spanish government to cut taxes as living costs rise. It also wants to remove value added tax (VAT) from basic food and essential goods. People’s Party MP Maria de Lluc Fornas put the proposal before the parliament’s Finance and Budget Committee on Tuesday, 13 October. The cuts are requests, not changes already in force.

Fuel, electricity and help for businesses

The proposal calls for VAT on fuel to fall to 10%. It also seeks a pause in the tax on electricity production, the lowest rate for a separate electricity tax and a cut in the tax on hydrocarbons to the minimum allowed by the European Union. Many of the measures would run at least until the end of this year.

Fornas’s proposal also seeks aid for farming, livestock, fishing, transport, industry, construction and trade. It calls for a review of how sea and air freight costs are offset, and for the impact of being an island to be routinely considered when tax policies are drawn up. The Balearic government is being asked to add temporary tax cuts or direct help for the hardest-hit sectors alongside any Spanish government measures.

Island research gets a partial go-ahead

The committee also approved two parts of a separate proposal from Socialist MP Carles Bona. Parliament backed the need for research and data on demographic, urban and territorial change, including its economic, social and environmental effects. It also called for public funding of university research chairs to respect academic freedom and university independence.

Other parts failed. They included continuing the University of the Balearic Islands’ chair on island studies from 2027 and bringing back its urban studies chair.

Topics: Politics · Economy · Escorca

Source: Europa Press / Mallorca.com