Car rental companies in Spain’s Balearic Islands were informed this week that the new Car Hire Eco Tax, which was set to increase the cost of renting a car by up to 56 euros, has been deferred.

Car rental suppliers have welcomed this news as many local companies were concerned about how this new tax would affect summer car rental bookings.

Opposition from the Association of Balearic Travel Agents, accompanied by other tourism representatives, helped achieve this postponement. The aim now is to prevent this tax from being introduced altogether.

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