The Icelandic parliament voted today to raise taxes on alcohol, tobacco and petrol, and to extend lowered salaries for MPs until the end of 2010.
The new taxes are expected to bring 14 billion ISK into the treasury next year. There will be a 10% rise in taxes on alcohol and tobacco, while taxes on fuel will increase by one and a half kronur. At the same time, a new bill will add a carbon tax to fuel, and the car owner’s tax will increase by 10%.
Parliament also voted to continue to take a pay cut in the salaries for MPs. After the bank collapse of October 2008, members of parliament at that time agreed to take a 10% pay cut. Last night, they agreed to extend this pay cut until the end of the year 2010.