Search thinkSPAIN.com for  in 
spain jobs
backprinttell a friend

VAT looks set to rise
By:
ThinkSpain , Wednesday, June 27, 2012

It has emerged that the government is considering raising the rate of VAT in Spain.

The country's top rate of VAT (18%) is one of the lowest in Europe – and Prime Minister Mariano Rajoy has so far ruled out a hike insisting it could further damage consumer spending and prevent growth.

However, in a move that will save political face while also boosting much needed revenues, the finance ministry said it was considering plans to abolish discounted tax rates on certain goods and services, raising the rate to 18% across the board.

"The ministry is studying reclassifying certain products and services that have reduced or super-reduced VAT," a spokesman said.

Spain charges the reduced rate of 8% on the majority of food and sanitary products, ground transport, cultural activities such as cinema and theatre tickets, and hotel stays. The super-reduced rate of 4% is applied to basic foodstuffs such as milk, bread, fruit and vegetables and on books and newspapers.

Raising the VAT to 18% on all products and services would mean households would see a significant increase in weekly shopping bills in a nation that is already struggling with deep austerity measures and an unemployment rate of almost 25%.

In 2010, the VAT rate was raised from 16%, a move which was deeply unpopular and the conservative government pledged not to increase it further. They won a landslide victory in November, ousting the socialists of Jose Luis Rodriguez Zapatero.

The European Commission and the International Monetary Fund have both recommended Spain revise its VAT charges, widely seen as the only way to meet its deficit commitments. Spain is trying to trim its annual deficit from 8.9% of GDP last year to 5.3% this year and 3% in 2013 but analysts expect it to fall short.

 
Print Share Article RSS News Feed
print tell a friend stumble it!  delicious  digg it!  facebook   rss feed View feed | Add to my RSS reader rss feed

Latest ThinkSpain News
Hottest day in 145 years: Valencia sees Spain's highest October temperature ever at 35.8ºC
Environment/Nature - (22/10/2014)
Teresa Romero cured of Ebola and her blood will be used to treat others
Community/Public Services - (22/10/2014)
Three-day school strike over education funding cuts
Education & Employment - (21/10/2014)
 
Latest Business/Economy articles
Own-brand groceries and choice of supermarket 'could save shoppers thousands'
Spain  - (26/9/2014)
Late El Corte Inglés boss to get his own street in Madrid
Madrid  - (23/9/2014)
New 10-euro banknote hits the streets
Spain  - (22/9/2014)
 
  back
Follow thinkSPAIN on
Facebook Twitter
 
 
 
 
Spanish news archive Costa Blanca news Costa del Sol news Alicante news Castellon Valencia news Barcelona news Catalonia Costa Brava news Madrid news Tenerife news Canary Islands Malaga news Marbella news Andalucia news Sevilla news Costa Almeria news Murcia news Costa Calida Aragon news Asturias news Balearic news Mallorca Menorca news Ibiza Basque news Bilbao Cantabria news Castilla La Mancha news Castilla Leon news Extremadura news Galicia news La Rioja news Navarra news Spanish Travel Tourism news Spanish Property Spain directory services Spanish A B C D E F G H I J K L M N O P Q R S T U V W X Y Z Jobs in Spain Postcodes Spanish weather Spain History Spanish Culture Flamenco dancers Sevillanas Bullfighting bullfight bull fighting matador bullfighter Spanish Education Spain Schools Facts about Spain Clubs in Spain mortgages Spanish bank Spain banking Spanish banks Spain inheritance Spanish wills Spanish healthcare in Spain Working in Spain work Spanish employment Driving Spain cars Spanish car Spain Tax & Spanish Residency Property in Spain for Sale Spanish property to rent Spain holiday lets Spain news Spanish Properties SpainSave costa blanca 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 40 41 42 costa del sol 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 local news/info Spanish estate agents Off Plan property Spain | costa blanca property sales properties for sale real estate costa blanca villas | costa del sol property sales properties for sale real estate costa del sol villas | costa de la luz property sales properties for sale real estate costa de la luz villas | costa brava property sales properties for sale real estate costa brava villas | costa almeria property sales properties for sale real estate costa almeria villas | costa calida property sales properties for sale real estate costa calida villas | costa valencia property sales properties for sale real estate costa valencia villas | costa azahar property sales properties for sale real estate costa azahar villas | costa dorada property sales properties for sale real estate costa dorada villas | costa garraf property sales properties for sale real estate costa garraf villas | costa maresme property sales properties for sale real estate costa maresme villas | costa vasca property sales properties for sale real estate costa vasca villas | costa verde property sales properties for sale real estate costa verde villas | costa da morte property sales properties for sale real estate costa da morte villas
 
© 2003-2014 Think Web Content, S.L. - All rights reserved