OPPOSITION PLANNING ALL OUT WAR OVER IVA

PALMA
THE opposition Partido Popular are not taking no for an answer from the government over the summer hike in IVA (VAT) and the PP President of the Community of Madrid, Esperanza Aguirre, has announced that during the next quarter of this year, the PP is going to “mount a rebellion” against the increase in IVA.

The government was challenged in congress by the Balearic PP congresswoman Maria Salom on Monday but refused to back down, however, Aguirre is a PP heavyweight and maintains that any increase in IVA will prove “lethal” for business, in particular tourism which is also important for Madrid's economy.

She is planning a national tour to rally support for a major campaign against the government's IVA policy.
Aguirre says that in view of Spain's continuing economic problems and the very real possibility of it taking longer than anticipated to drag the country out of the recession, putting up IVA is going to result in serious damage to the small business sector, the self employed and the regional communities highly dependent on tourism such as the Balearics.