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Andrew Daniel

Andrew leads our Operational Team and is our expert when it comes to all the ins and outs of car hire excess insurance.

Balearic Islands Car Hire Eco Tax Postponed Indefinitely

No need to avoid Ibiza, Menorca or Majorca as the Balearic government climb down on their proposed Eco Tax on Car Hire.

According to a press release from Economy Car Hire, car hire firms have just been informed that the proposed Eco Tax on hire cars in the Balearic Islands which was due to be implemented on the 1st April 2013 has now been postponed indefinitely. We first reported about the tax in February and have been waiting for confirmation that it had or hadn't been enforced ever since.

This is great news for those hiring a car on Menorca, Majorca or Ibiza as the tax was expected to be between €3.00 and €7.50 per day according to the hire car's CO2 emissions potentially adding nearly £50 to the cost of a weeks car hire. As the Balearic government dithered over actually implementing the tax, car hire firms were unable to build the costs into their rates. The tax would then have to be collected locally as an unpleasant surprise to many holidaymakers.

Happily, the argument from the tourist industry that the tax would be more damaging to the longer term Balearic economy than beneficial in the short term seems to have won out.

Managing Director of Economy Car Hire, Rory Sexton said: "This is fantastic news for both holidaymakers and car hire companies operating in the Balearic Islands. This should give tourism here a welcome boost.”

MoneyMaxim welcomes the move, saving tourists from an unexpected additional tax. Further savings can be made when renting a hire car by refusing to pay extra for waivers on car hire excess costs. Even companies offering zero excess Collision Damage Waiver and Theft Protection Waiver will catch you at the rental desk saying that damage to tyres, wheels, windows and underside of the car aren't covered so you'll need the additional insurance. Fair enough, but by buying beforehand from MoneyMaxim's car hire excess comparison service you can save 80-90% of the cost of buying car hire excess insurance locally.