Words by

Catharine Fulton

The new government has put forth four new bills to be discussed when parliament meets on Tuesday, with one proposing some good news for would-be tourists in Iceland.
Minister of Finance and the Economy Bjarni Benediktsson has tabled a bill reversing the proposed VAT increase on accommodation. If the bill is successful the VAT will remain at 7% rather than increasing to the previously agreed upon 14%, RÚV reports.
Maintaining the 7% VAT level will lead to a loss of 500 million ISK in revenue and a budgetary deficit. It is assumed that this loss will be made up for in increased tourism. You know what they say about assuming…