Saturday, 2 January 2010

Crappy New Year for all: almost all services, and VAT, to cost more

This new year offers no quarter to the consumer. Almost all services, such as public transport, bottled gas, electricity and - you name it - are going up, and not only because VAT is rising by 2%, from 16 to 18% on all but the most basic products. The government is in crisis mode: it isn't cutting costs particularly, but it is trying to raise money from wherever it can. As usual, it's the consmer who pays. Below, you will find a listing of what is going up (and down, not a lot) and, wherever possible, by how much.>
  • IVA (VAT) as from July 1st - from 16% to 18%, except on basic foodstuffs such as bread.
  • Electricity - up by 2.64% (not including the New VAT rate)
  • Butano (bottled gas) - up by 3.4% (35 céntimos) to €11.04
  • Public Transport - Renfe trains go up by between 4% and 6%, buses by anything between 2% and 21.6% depending on where you live.
  • Postage - National, ordinary mail up by 6.25% to €0.34. Regularmail to Europe up to 20 grammes, up by 3.22% to €0.64. Other destinations 'remain about the same'.
  • Taxes - There is a host of increases in taxes throughout the system - be sure to ask your tax expert how this affects you.
  • Pensions and minimum wages in Spain go up by a paltry 1%, if that.
Please note that these are just some of the increases, on a national scale. It is probble that, thanks to the recession, local authorities will see fit to increase such items as council rates (IBI) , road tax, etc.

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