Balearics set to introduce new car hire tax

Spain's Balearic Islands is to introduce a new car hire tax which could increase the cost of holidays for UK travellers.

The new eco-tax on rental cars, which is due to be introduced in April this year will add up to 52.5 euro a week to the cost of car hire on the popular Spanish holiday islands.

The tax will be charged at between 3 and 7.5 euro per day depending on the car's CO2 emissions.

Holiday makers will be charged the eco-tax when they pick up their hire cars, regardless of how they have booked the vehicle and whether they have paid the full cost in advance.

Tourism experts in Britain and Spain have called for a delay in implementing the tax with the Spanish Tourism Minister describing the tax as unfair and ABTA stating that ‘surprising' tourists with a new tax will do more harm than good.

The Government in the Balearics is hoping to raise 15 million euros a year from the new tax.

In the current economic climate holiday budgets are under pressure with many holiday makers having to plan their spending very carefully. A new tax on car hire which is unexpected could cause problems for some families when they arrive in resort.

Whatever your holiday budget, you should always make sure you have travel insurance for your trip. Travel insurance will protect you from the risk of incurring large medical bills if you fall ill or have an accident and need medical treatment whilst you are on holiday.

Although Spain and the Spanish Balearic Islands are a popular holiday destination for British holiday makers, making them feel like a home away from home, travel insurance for Spain is still vital because the costs emergency medical treatment can quickly mount up to thousands of pounds.

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