Fuengirola Council will be implementing a new municipal tax ordinance as from January 1st 2013 which will see the tax relating to rubbish collection rise by around €30 to €80 per household per annum.
Under the current law, Councils are not allowed to run services at a loss. However, rubbish collection in the municipality runs at a deficit of €1.2 million and the Council sees a rate increase as the only viable and legal option if a reduction in the quality of the service is to be avoided.
Businesses will see an increase based upon three factors: activity, size and location, and this has led to criticism and claims that a number of businesses could experience an increase of between 170% and 686% in some cases. Such increases would further damage small and medium sized businesses, already suffering in the current financial climate.