Back in February iCarhireinsurance alerted customers to a new eco-tax which was to be introduced in the Balearic Islands in April this year. This new tax would have seen those wishing to hire a car paying an additional €3 - €8 a day on top of the rental price depending on the size of car they were renting. 

However, in an announcement made last week, plans to introduce this tax have now been postponed thanks to opposition from The Association of Balearic Travel Agents and other tourism bodies who were concerned as to the effect such a tax would have on local tourism:

"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."

Remember, it's not just unexpected taxes that can drive up costs at the rental desk! From just £2.99 a day, be sure to buy your car hire excess insurance before you arrive at the rental desk to save up to 80% on insuring against excess fees should you damage the vehicle.