By Humphrey Carter PALMA

THE opposition centre right Partido Popular is this weekend holding its XV Inter parliamentary convention in Palma and the leader of the opposition, Mariano Rajoy, revealed that his party intends to challenge the Spanish government over its policy to put VAT up by two percent this year to 18 percent.

Yesterday, the PP's spokesperson for Industry, Tourism and Commerce, Maria Salom, elaborated on Rajoy's comments made late on Friday night by telling convention delegates that the PP is not only going to try and stop the Socialist government from hiking VAT, it is also going to table a motion in Parliament that, in the case of the struggling tourist industry, VAT is in fact cut to four percent.