The High Court of Justice of the Canary Islands (TSJC) has cancelled the region's first tourist tax just one day after it was introduced in Mogan in Gran Canaria, following a challenge from the Federation of Hospitality and Tourism Entrepreneurs (FEHT).
The court made this decision without hearing Mogan council's side first.
The Mogán Council now has three days to defend the tax's validity, which came into effect on Tuesday (March 11th), requiring payment of €0.15 per night for guests staying in local tourist accommodations in the municipality in the south of Gran Canaria.
However, FEHT argued that the ordinance for the tax was poorly written and included confusing terms that made it hard to enforce.
Judge Francisco José Gómez de Lorenzo-Cáceres stated that this tax created "an inappropriate and disproportionate burden" and should have been regulated by a formal law. FEHT also claimed that the tax would impose excessive administrative work on hospitality businesses, which goes against the principles of fairness and cost minimisation.
According to the ruling, the tax will remain suspended until the TSJC reviews the council's arguments, which Mogán plans to submit once it receives the official notification from the court.
