you coudn't make it up

[pollensafan]

Just in case you thought it was only our government that attended the university for the terminally stupid, you will be pleased to know the spanish leaders got their qualifications from the same place. Their head honcho has announced that from july the iva will be increased by 2%. For those who might not know, thats the amount you see on your restaurant/bar bills etc-.He said " i don't believe this will have any adverse affects on tourism as spain is already one of the cheapest place's to take a holiday" In the same week, his minister for tourism said. " we have just had our biggest drop in tourism in history at almost 25% " Mallorca took the biggest hit with a 22% decline. You really couldn't make it up.

 

[eleanor]

Unbelievable! What will that make the IVA rate then?
I thought it was increased in January of this year, perhaps I was wrong. It will have an effect on everything and also be an excuse to increase prices.
I spoke to someone the other day who had decided to buy in Cyprus rather than Mallorca. When I asked why the answer he gave was that Mallorca was called 'rip off island'.
Bit unfair I thought but I suppose it is easy to have that opinion. Although of course IVA is applicable to Mainland and other Balearic Isles also.

 

[Mark]

Up to 18% ( was 16%) and 8% on the reduced rate items ( was 7%)

Not good

lots on google about this:
spain iva increase july 2010 - Google Search

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Lets see what happens with UK VAT when the UK election is over
I guess at 20% for UK very soon.

uk vat increase after election - Google Search

Mark