VAT to rise from 18% to 21% on 1st August
11 July 2012 @ 13:49
Spanish Prime Minister Mariano Rajoy today announced a raft of austerity measures to tackle Spain's crippling budget deficit and as a condition of it's bank bailout money from the other EU states.
One of the measures is an increase in VAT from the current 18%, to 21%. The reduced rate levied on some products such as food will rise to 10% from the current 8%.
The lower 4% rate will remain the same.
Not really what the Spanish economy needs right now. It needs to reduce taxes to stimulate growth, but it is obviously not in a position to do this any time soon.
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