A study by the Organization has found Consumers and Users (OCU) of 10,000 prices in major supermarket chains shows that while most major companies announced that they would be absorbing the September IVA hike, prices of leading brands have gone up on average between 0.8% (Carrefour) and 2.6% (Mercadona).
IVA…
Quite a few establishments of one sort or another displaying signs stating that they will not be increasing prices as a result of the IVA hike. Many small businesses would rather try and absorb the increase and keep their clients than risk losing business. Large enterprises are a completely different kettle of worms, of course.
Way to go…
Raising the rate of IVA by anywhere between 3 and 17 points is not an austerity measure but a quick way of earning a bit of extra revenue. But what a way to try and stimulate consumer spending and tourism in a stagnant economy: hammer the consumer at every turn with higher IVA, clobber the tourist with increased airport taxes …
School items hit by IVA hike
It may be early to be thinking about ‘back to school’ except that a lot of things are going to be far more expensive this year as IVA on many items is up from 4% to 21%.
IVA on cultural items to go from 8% to 21%
Tickets for the cinema, theatre, concerts, circuses and other cultural events and shows are set to rise after the announcement that IVA (VAT) on such things is to be increased from the current 8% to 21%.
IVA hike takes effect on September 1st 2012
The decision has been made. The increase in IVA (VAT) from 18% to 21% and from 8% to 10% will take effect from September 1st 2012. The 4% rate for the purchase of a first home will rise to 10% on January 1st 2013.
IVA hike and tourism
According to Exceltur, the tourism GDP could fall by 1.5% in 2012 with the increase in IVA (VAT) from 8% to 10% in the sector and turnover could drop by €2 billion if the increase is passed on to the consumer, which it undoubtedly will be from past experience.
IVA to go up by 3%
IVA (VAT) is set to rise by 3% to 21% and budgets to local authorities are to be cut by €3.5 billion as part of the latest round of austerity measures.
Government studying increase in IVA rates
The Government and the Tax Office are studying the possibility of raising the rates of IVA (VAT) on products and services currently benefiting from reduced rates, such as tourism and foodstuffs, in order to raise more revenue.
Plans for change in tax structure and increase in IVA
The Government is planning to raise indirect taxes – IVA, excise duty on alcohol, tobacco and petrol – next year as part of its strategy to reduce the budget deficit to 3% of GDP by the end of 2012, part of a change in the tax structure which will result in less taxes on labour and more on consumption.