Econ

Zappatero and Brown directly are not but their governments are (just to state the obvious), and they are related to the increase in VAT in the respect that their 'usage' is being altered because the government needs more money, just like plans to up Plus valia to 20%, another 15 cents going on petrol tax etc. etc.

Casa Santo Estevo

No No No...I do not want to live in Ryanair Land....

Lenox

'El Mundo' today says that the 'plus valía' will go up to 20%, there'll be increases on smokes, booze and petrol and the basic IVA will go up - in a couple of months time - two points to 18%.

I should add - Zapatero also forgave Bolivia's debt to Spain today (if you were wondering where the money goes) and has signed a special accord allowing the Bolivians resident in Spain to vote in local elections.
Wonder who they'll vote for, hey?

jurdyr

will you think off it Vat has been going up in most the EU states over last year with Ireland been the frist last nov 2008 , now 21.5% Portugal 20% (as of July 1, 2008) , France 19.6% and Gibraltar is a VAT free jurisdiction . so board going to be up walls again , some did post hear about it

But biggest bang going two be VAT on travel soon . it coming

jackytoo

Really gonna kick start the property market

steviedeluxe

I'm surprised that anyone would ever want to buy in Spain again, after all the criticism it gets from certain posters here

Casa Santo Estevo

Whilst it is good to suggest that Spain has quite a low rate of IVA you have to remember that we also have a low rate for wages here too. Because of this raising any taxation rate in Spain will surly add to the unemployment problem(s).
It will harm all sectors not those mentioned in the above postings.

Tele Addict

El Mundo is very right wing so it would say that, but let's wait and see. BTW a recent study of South American immigrants suggests the majority vote PP.

Casa Santo Estevo

Well it has just been announced---- IVA to rise.
http://www.lavozdegalicia.es/dinero/...6327995461.htm
The 19% tax will rise to 21% and the 7 % will rise to 8%
There is normally a 400€ allowance on your income ( Which I did not know about) that will be abolished.
and you will get taxed on any savings. A whacking 19% on the first 6000€ and then 215 on the rest...how can you save anything when you only get about 1% interest?
The good news is corporation and self employment tax will be lowered by 5 percent.
All kicks off in July next year.

rachelk

I think that's only been in place for the last couple of years anyway, it was a pre-election promise.

It's also worth pointing out that the lowest IVA rate, the 4% on 'basic products' remains unchanged.

Econ

The government just announced the increase in IVA will take place from May 1st, 2010 and that this increase in IVA will increase employment... she failed to mention that employment generally increases in July anyway because of the oncoming summer and that this increase has actually nothing to do with them putting IVA up.

Just on a side note, the government passed from today that minors of 16 years can now abort without their parents knowlage or permisson...

snikpoh

I'm confused - I thought IVA was currently 16% so where does that fit in?

Econ

BTW, see here for the various levels of IVA rates:
http://www.asesores.com/fiscal/tipiva.htm

Casa Santo Estevo

Nope it seems to be in every newspaper it will go up in July

Now you mention it so are we! The upper level is 16%

These articles suggests a two point raise to 18% in July 2010
http://www.eleconomista.es/economia/...l-capital.html
http://www.lavanguardia.es/economia/...-en-julio.html

Econ

Sorry... yes start of July not May, Elena Salgado was shown making the announcement on the Spanish news today.