Bloomberg News

Spain Weighs Sales-Tax Increase That Rajoy Opposed in Campaign

June 26, 2012

The Spanish government is studying a possible increase in sales tax following a recommendation from the European Commission, according to a budget ministry official.

Officials are considering revising the list of products that benefit from reduced rates of 8 percent and 4 percent to increase revenue, said the official, who asked not to be named in line with policy. The standard sales tax rate is 18 percent.

The commission and the International Monetary Fund are pushing Spain to raise tax on consumption to tilt the economy more toward exports. Prime Minister Mariano Rajoy pledged not to increase the levy during his election campaign last year.

To contact the reporter on this story: Ben Sills in Madrid at bsills@bloomberg.net

To contact the editor responsible for this story: James Hertling at jhertling@bloomberg.net


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