The plenary session of the Barcelona City Council held this Friday marked a milestone with the definitive approval of the new Terrace Tax.
The measure has the support of the PSC, Junts, PP and Vox parties, while BComú and ERC voted against. The approval of this tax implies the elimination of the 75% bonus that was applied during the pandemic.
The new regulation, which modifies the current tax ordinance, proposes significant changes in the way terraces are taxed in Barcelona.
One of the most notable changes is the elimination of the 75% bonus, which was in effect between 2020 and 2023 as an exceptional measure during the COVID-19 crisis.
In addition, a progressive escalation in the rate is introduced, based on the number of tables on the terrace. This scaling seeks that establishments with more tables and chairs, which occupy more public space, pay a higher rate.
The initial proposal of the municipal government contemplated one section for every four tables, but after negotiations with the Gremi de Restauració and later with Junts, it was agreed that the sections would be established for every five tables. The applied coefficient starts at 0.30 and increases progressively until it reaches 0.80.
Significant changes in the Terrace Ratio
The new rate represents a significant reduction in the tax burden on the restaurant industry. It is estimated that, with the elimination of the 75% rebate, the annual collection of the fee will double from just over 2 million euros to 4 million euros.
This measure seeks to balance the economic needs of the sector with the impact of the pandemic on revenue collection.
For his part, the Deputy Mayor for Economy, Jordi Valls, defended the new rate as fiscally rigorous, arguing that there is no longer an exceptional situation that justifies maintaining the 75% rebate.
On the other hand, Ramon Tremosa of Junts considers that the approved rate improves the initial proposal of the municipal government.
On the other hand, BComú councilwoman Janet Sanz has expressed that the new fee does not represent a good agreement for the city and has urged to seek agreements that ensure balance and coexistence between the affected sectors.
For his part, the ERC councilman, Jordi Castellana, pointed out that the real problem in the catering sector is the rents and not the tax.
The final approval of the modification of the tax ordinance allows the new terrace tax to come into force retroactively from January 1, 2024.
Once the agreement is published in the Official Gazette of the Province, the changes are expected to be implemented quickly, marking a new chapter in the regulation of terraces in Barcelona.
