Prime Minister under more pressure over VAT increase

PALMA
THE opposition Partido Popular spokesperson for tourism in congress, Maria Salom, yesterday directly challenged the Prime Minister over the government's controversial plan to put IVA (VAT) up by one percent in July.

The PP and the tourist industry as a whole have strongly opposed the VAT increase but, after last week's volcanic ash crisis which cost the Spanish travel industry hundreds of millions of euros in losses, the government is coming under intense pressure from the business sector to postpone or srap the VAT increase.

Salom warned the Prime Minister, Jose Luis Rodriguez Zapatero, that the PP is going to table a fresh motion against the tax hike over the coming weeks.
She said that the government needs to be doing more to help the country's second largest industry.