THE opposition Partido Popular will today vote in favour of a white paper recommending that IVA (VAT) be cut to four percent for the tourist industry and that port and airport taxes are slashed by 50 percent to help stimulate the industry this year and encourage new investment in the sector.

Spain has slipped from being the second most visited country in the world to the fourth, with the USA and China moving in front, and the PP believe that fiscal incentives and aid are going to be vital in helping the country's tourism industry regain its competitiveness and position as one of the two most popular holiday destinations on the planet.

Both France and Germany have significantly cut their levels of VAT for the tourist industry by 14 and 12% respectively.


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