Sunday, October 12, 2014

The central government eases the 'lighthouse tax', benefiting the tourist but not the resident

Dashed hopes again as the Balearic nautical sector has to continue waiting to get rid  of the Tax for Aid for Navigation - commonly known as T0 or the lighthouse tax, despite demanding its elimination for years, specially after the the government increased this tax by more than 100% last year, raising the volume of protests to record high. This tax is paid by all recreational craft with a mooring in the Balearic islands, as well as by visiting yachts.

Little has it helped to have the backing of the president of the Balearic government, José Ramón Bauzá, who in the beginning of the year declared his support for the cause and who even promised to protest in Madrid. Now, eight months later, it is obvious that his complaints served for nothing, and that despite a modification of the tax in the 2015 state budget, the more than 25.000 vessels permanently moored in the Balearic Island won´t benefit from it.

The tax, which until this year was insignificant, serves a purpose in financing the loss-making Sea Rescue and Safety at Sea (SASEMAR), and the modification of which is included in the Project for the General State Budget, presented last week by the Tax Minister, Cristóbal Montoro, in the Lower House of the Parliament. More specifically in the part dedicated to the Ministry of Development of Infrastructures, although the contents of the modification are not specified.

The changes benefit above all the tourists who moor their yachts in the archipelago during their vacations, but not the residents who will not be affected by the modification. From 2015 onwards the transiting yachts pay only for the days they are moored, while up until now they had to pay for a whole month even if they stayed a shorter time, the intention being to stimulate more visiting yachts to the islands and to boost nautical tourism.

In the meantime, the residents will have to pay the tax for the whole of 2015, which means they will not benefit from the changes, according to the confirmation from the State Ports (which  functions under the Ministry of Development of Infrastructures). This has angered the Balearic nautical sector, which collectively feels that it has been ignored once again. However, the same official sources point out that until the budget has been approved, nothing is confirmed. We have to wait and see if some of the presented amendments will be successful.

Read the complete article in El Mundo.

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