From SUR in English page 2.
The proposed tax hikes in the
budget bill announced by the
Spanish government and presented
to Parliament on Tuesday
have drawn heavy criticism from
both the main opposition party,
the conservative PP, and the leftwing
Izquierda Union.
The general value added tax
(IVA) rate, currently at 16 per
cent, is due to rise to 18 per cent
on July 1st next year, and one of
the two reduced rates will go up
by one per cent to eight per cent.
This second rate affects the price
of goods such as contact lenses
and glasses, accommodation and
funeral services.
The Government has promised
not to increase the third, lowest
rate of four per cent which affects
the price of basic goods such as
bread, milk, medicine, books and
newspapers.