Conservative Chairman Criticises Proposed Tax Increase

Published August 10, 2012

Conservative chairman Bjarni Benediktsson has called a government-proposed increase on the VAT on accommodation costs “utterly ridiculous”.
The ruling coalition, in their continued work at recovering the economy, have looked for where cuts can be made and increases levied. One area involves tourism – the government is proposing increasing the VAT on accommodation costs from 7% to 25.5%. As tourism is a growing industry, the government believes more than tripling the VAT within the field could bring in much-needed revenue for the economy.
Vísir reports that conservative chairman Bjarni Benediktsson strongly disagrees, calling the proposal “utterly ridiculous”.
He considers the tax hike unrealistic, and does not believe it would bring any significant returns to the treasury coffers. Bjarni also pointed out that as a growing industry and area of employment, it has been hoped that investors would be drawn to Iceland. “The last thing [tourism] needs are tax hikes which undermines the industry as a whole during a period of growth.”



News
Icelanders Overwhelmingly Reject Private Health Care

Icelanders Overwhelmingly Reject Private Health Care

by

A new poll from the Social Sciences Department of the University of Iceland shows almost all Icelanders want more money

News
Mayor Accepts Wheelchair Challenge

Mayor Accepts Wheelchair Challenge

by

In response to a wheelchair-bound Icelander’s challenge, Reykjavík mayor Dagur B. Eggertsson will attempt to navigate downtown in a wheelchair

News
Police Chief Demands Media Silence On Sexual Assaults

Police Chief Demands Media Silence On Sexual Assaults

by

The Westman Islands’ police chief has called upon all responders and festival staff to remain silent to the media on

News
President Undecided If He Will Run, People Undecided Who To Vote For

President Undecided If He Will Run, People Undecided Who To Vote For

by

President Ólafur Ragnar Grímsson says he is undecided if we will run again, while most Icelanders are still undecided on

News
Humpback Whale Rocks The Boat – VIDEO

Humpback Whale Rocks The Boat – VIDEO

by

Some prospective whale watchers were met with a close encounter that, while momentarily scary, left no one harmed. RÚV reports

News
Moss Used As Camping Insulation

Moss Used As Camping Insulation

by

Rangers at Þingvellir National Park discovered yesterday, to their dismay, that campers had ripped up slow-growing moss to insulate their

Show Me More!