The Canary Islands’ first attempt at introducing a tourist tax has been thwarted by judges just one day after its implementation.
Officials agreed to impose the region’s first tourist levy in the municipality of Mogán earlier this year. But it has been halted by the Canary Islands High Court of Justice (TSJC), according to reports.
Canarian Weekly reported that the tax took effect on Tuesday, March 11. It mandated visitors to pay €0.15 per night during their stay in Mogán.
However, the TSJC ruled against the tax on Wednesday, March 12, following complaints that it was “poorly written” and “confusing”. It follows complaints from the Federation of Hospitality and Tourism Entrepreneurs (FEHT) against the tax, which had received approval from city officials in the previous month.
Judges have temporarily suspended it, with Judge Francisco José Gómez de Lorenzo-Cáceres criticising it for imposing “an inappropriate and disproportionate burden”. The judge arguing it should have been established through formal legislation, reports The Express.
The FEHT argued that the tax would result in excessive administrative complications for those in the hospitality sector. The tax was confirmed at a Mogán City Council meeting on Friday, February 28, where it was decided that it would be applicable to guests staying in hotels, holiday homes, and other tourist accommodations.
Under this scheme, property owners subject to the tax would then remit the collected fees to the city council. Nonetheless, it is reported that the TSJC’s decision to suspend the tax occurred without considering Mogán City Council’s stance.
The City Council has now been given a three-day window to present their case for the tax and seek the reversal of the provisional suspension. A spokesperson from Mogán City Council confirmed the authority’s intention to appeal.
The spokesperson said: “In view of the precautionary suspension of the Fiscal Ordinance Regulating the Fee for Services and Activities Derived from Tourism Activities and the Sustainability Obligation, the Mogán City Council is awaiting the formal ruling of the Canary Islands High Court of Justice (TSJC), which it learned of through the media.”
“The Mogán City Council has always been aware that this circumstance could occur, and therefore, when the local government is duly notified, it will appear before a judge or court within three days to defend the aforementioned ordinance and to ensure that the precautionary suspension measures can be lifted.”