IMF call on Spain to raise their VAT rate

IMF call on Spain to raise VAT

The International Money Fund has called on Spain to raise its VAT rate, even though they said they are pleased with the progress that Spain has made so far it still needs to see more improvements especially on the high levels of unemployment, currently at 24%.

Spain’s economy is gaining momentum and is expected to grow by 3.1% this year however they still need more revenue to boost their economy and the IMF believe they can best do this by raising their VAT rate. In addition they also say other reforms were needed, such as an overhaul of employment contracts and the introduction of healthcare co-payments.

So far the Spanish Government says it had no plans to raise the VAT rate, but it is something that could be a possibility in the near future if they are to listen to the IMF.