MALLORCA TODAY - Consternation in the tourism sector at possible rise in IVA

A further rise in IVA (VAT) looks likely, given the recommendations of the European Union to the Spanish Government. But the tourism sector is greatly concerned that the current reduced rate of 8% for the sector (against 18% generally) could be scrapped and that it would end up with the same rate. Representations have been made to the national tourism minister Jose Manuel Soria, following rumours that such a rise might occur and might occur as early as next month. It might be remembered that the tourism sector had hoped for a further reduction in IVA when the Partido Popular government took office and that sources within the PP had indeed suggested this might happen.