Iceland plans to treble VAT on hotels
Tour operators have hit out at proposals to more than treble VAT on accommodation, restaurant meals and attractions in Iceland.
The country’s government is planning to increase VAT from 7% to 25.5% from May 1 2013, a move which operators say is a "stinging rebuke" against anyone investing in the country.
"This tax rise is being introduced at the start of the inbound tourism season, just when it will do the most damage," said Tom Jenkins ETOA chief executive.
"It penalises any operator who has signed contracts and published brochures featuring Iceland next year. No company can absorb such a surcharge."
by Bev Fearis
Bev
Editor in chief Bev Fearis has been a travel journalist for 25 years. She started her career at Travel Weekly, where she became deputy news editor, before joining Business Traveller as deputy editor and launching the magazine’s website. She has also written travel features, news and expert comment for the Guardian, Observer, Times, Telegraph, Boundless and other consumer titles and was named one of the top 50 UK travel journalists by the Press Gazette.
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