SANTA CRUZ DE TENERIFE, 7th May. (EUROPA PRESS) –
Speaking on Tuesday, the Minister of Finance for the Canary Islands government, Matilde Asián (PP), expressed her belief that increasing taxes on tourism will not lead to a more sustainable Canary Islands or solve its problems. She emphasised her willingness to “listen” to all stakeholders involved in the decision-making process.
Responding to the PSOE during a parliamentary session, she stated, “Despite continuous tax hikes, the Canary Islands have not become more sustainable. This is evident.” She also highlighted that tourist stays are already taxed through the IGIC in the islands, with the revenue generated contributing to the financing of public administrations.
“We can debate whether to increase or decrease the taxation on tourist stays, but it’s important to acknowledge that they are already taxed. We have seen the impact this tax has had on the sustainability of the Canary Islands,” she added.
Asián mentioned that local authorities have the ability to set tax rates “within their jurisdiction”. She expressed support for “listening” to all parties involved in shaping the future model for the Canary Islands, and collaborating with the groups formed post the Conference of Presidents.
PSOE’s Manuel Hernández criticised Canary Islands President Fernando Clavijo for considering raising the IGIC on tourist overnight stays, referring to it as a “spiral of absurdities”. He raised concerns about the Minister of Finance’s apparent silence on this matter and questioned the coordination within the government.
Hernández highlighted the government’s changing stance on taxes, from promising a decrease in the general IGIC rate from 7 to 5%, to increasing fiscal pressure in the first budget, and now proposing another hike for citizens staying in hotels or villas. He argued that around 48% of tourists visiting the islands opt for all-inclusive packages, which cover expenses for overnight stays and should not be taxed additionally.
He concluded by saying, “The government’s credibility is diminishing with each decision,” pointing out inconsistencies in their tax policies.
