Reduced VAT rate may rise
Wednesday, 27 June 2012 11:47
Finance Ministry sources said on Monday that it is studying areas where the value-added tax (VAT) hikes recommended by Brussels may be applied,
which means people may soon be paying up to 18 per cent on certain goods and services that until now have enjoyed a reduced and super-reduced rate.
The current reduced eight-per cent rate is applied to the most food and health products, land transport, and concert, movie and museum tickets. The super-reduced four percent rate is for basic foodstuffs such as milk, fruit and vegetables.
The European Commission and the IMF have recommended that Spain adjust VAT on certain products and services but Prime Minister Mariano Rajoy has insisted that that he won’t raise VAT above the 18 per cent rate.
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