Mariano Rajoy speaks out against planned VAT increase

Mariano Rajoy speaks out against planned VAT increase
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By h.b. - Mar 14, 2010 - 6:25 PM
The Partido Popular leader has called on smaller parties to vote against the Government on the matter on Tuesday

Mariano Rajoy - EFE

The Partido Popular leader, Mariano Rajoy, has put forward a five point crash plan against the recession without increasing VAT/IVA.

He described the plans to increase VAT on July 1 as an example of how bad government would affect all the citizens, as he spoke at the closure of the PP regional conference in Valencia over the weekend and shared a stage and complements with Francisco Camps, the PP leader in the region.

He called on the regional parties PNV and the Canary Island coalition not to support the Government in a vote on the increase in Congress on Tuesday. He also said a new super-reduced VAT should be applied in hotels and restaurants to boost the hostelry sector.

Rajoy says he wants to see a new work contract for the unemployed and youngsters, and to fight bad debt. He said the alternative to increase taxes was to spend less, accusing the Government of throwing money away, and said that the financial system needed restructuring to enable credit to flow.

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