VAT hikes add to Spanish woes

Austerity linked sales tax increases in Spain saw the rate on meat and fish increase from eight to ten percent. Shoppers have been complaining about the hikes, which are the latest in a series of such measures in Spain where the government is struggling to cover its debts in the midst of a recession.

One shopper said the news is the latest blow for him and his family. “We have children, and a woman who is sick and can’t work so this affects us a lot. We just have to accept what the government does”, he said.

The increases – which also include a rise on consumer tax for petrol from 18 to 21 percent – come as the Spanish government takes action to boost revenues and cut its deficit.

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