As part of Spain’s strict austerity measures, shoppers will now face a sharp increase in taxes on goods and services. Spain’s centre-right government on Saturday raised its main value-added tax (VAT) rate by three percentage points to 21 per cent as part of a drive to slash 65 billion euros ($82bn) from the public deficit by 2014 and save the country from a full international bailout. But most Spaniards are not happy about the tax increase. Cash-strapped Spanish shoppers and small businesses were resigned to more pain, as everyday living costs like heating, phone bills, clothes and haircuts all become more expensive following a hike in VAT.

In Portugal the maximum VAT are already in 23%: a robbery

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