Increase from 18 to 21% on the cards... Ouch !!!!

Full story here:

http://www.telegraph.co.uk/finance/d...isis-live.html

That will really help those that are desperate in Spain at the moment

The taxation regime is going to put many off moving to and remaining in Spain

One view of the cuts

Nicholas Spiro at Spiro Sovereign Strategy says Mr Rajoy's €65bn austerity package is "potentially ruinous":

The Rajoy's government's plans for a further €65bn in tax increases and spending cuts over the next two-and-a-half years will only deepen and prolong what is already a severe recession. In the eyes of most investors, not to mention Spaniards, the fiscal retrenchment is never-ending and potentially ruinous.


These cuts will be the conditions imposed by the EU as bailout conditions despite Rajoy saying there weren't any. He also said yesterday (again) that the bailout money was a triumph for the euro. Maybe, but it certainly isn't a triumph for Spain.

http://www.bbc.co.uk/news/world-europe-18792427

IVA to go up to 21%

Most business will be looking for ways to fiddle the vat rise, suppliers will do deals and most catering places that I know will not be putting their prices up, as that will mean extra expense and they feel that customers will cut back even more, but they will declare less income and pay for more off the books.

Where will the Merkel axe come down next? More to the point, can the Spanish personal accounting methods equate to it and if so how will the bailout ever get paid back? Or maybe i am just missing something?

More will go into the black for business who will be creative with accounting, the man on the street will not be able to avoid paying the extra vat.