Catalonia approves decree law delaying application of tourist tax increase

The Catalan government has approved a decree law that retroactively postpones the entry into force of the changes to the tourist tax.

Last week, the executive announced they would approve the decree law postponing the tax after its delay, as a bill, was defeated in parliament, thus making its validity immediate. At the same time, lawmakers approved last week an increase in said tourist tax in a bill, but rejected in another that the tax would come into force at a later date, in October, rather than the initially scheduled May 1 start date. 

The legal tangle comes as a result of the minority Socialist government, with only 42 MPs out of 135 in the chamber, making separate pacts in parallel with different parties. The increase in the tourist tax was agreed with the left-wing Comuns and was backed by pro-independence ERC – both of whom were investiture partners for Salvador Illa’s government.

On the other hand, the Socialists had also made a deal with ERC to delay its application until after the summer, but this was rejected in the parliamentary vote as Comuns, Junts, and PP voted against it. 

The disagreements between Esquerra and the Comuns took the Catalan chamber by surprise.

Thus, on Tuesday, the Catalan government approved a decree law, –a measure which does not need parliamentary approval but only lasts for some months before having to go to lawmakers for full application–, pushing the start date of the law back from May 1 to October, giving it time not to come into force until it is fully agreed and voted on in parliament, providing “legal certainty” to businesses.

“Legal certainty”

Government spokesperson Sílvia Paneque is confident that parliament will validate the decree that postpones the application of the tourist tax "as soon as possible." Paneque appealed to the "responsibility" of the parliamentary groups to validate it "as soon as possible" and is confident that the bill can be approved before October.

The executive wanted to provide "legal certainty" to the tourism sector. According to Paneque, this new decree gives "confidence" to the sector after the days of "legal uncertainty."

The spokesperson appealed to the "responsibility" of all parliamentary groups and asked them for a "joint and shared reflection" to guarantee the validation of the decree, which she hopes will be "as soon as possible."

David Cid of the Comuns explained on Sunday that his party has already begun negotiations with the government over guaranteeing the rise in the tourist tax. 

The left-wing group want to assert their political weight to prevent the tax, with the increase in force, from being postponed or repealed. 

Tourist tax

In February of this year, the Socialists and Comuns signed a deal that will allow Catalonia to double the tourist tax.

Part of the revenue generated from the increased tax will be allocated to housing policies.

Under the agreement, the tourist tax in Barcelona could reach a maximum of €15 per person per night, while the rest of Catalonia will be able to increase the tax if they introduce a surcharge that was previously only applicable in the Catalan capital.

The increase in the tourist tax was one of Comuns' demands for supporting Salvador Illa's election as president. Illa's governing Socialists had committed to reviewing the tax and increasing it.

The deal states that, at least, 25% of the revenue the government will receive from this tax, will be used to fund housing policies to increase the offer available and improve housing access to vulnerable groups.