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Spanish Businesses Fret Over VAT Hike

时间:2012-09-01 06:47来源:互联网 提供网友:laura6688   字体: [ ]
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Spanish Businesses Fret1 Over VAT2 Hike  SEVILLE — Spain’s standard value-added tax will jump from 18-21 percent on September 1, and the reduced rate will rise two percent, the sharpest increase in the country’s history. The hike is expected to plunge3 Spain deeper into recession - at least initially4 - and opposition5 to the measure is widespread.

Braving the economic storm, Fernando Vázquez Rojas opened three restaurants in the past four years in Seville, where clients can dine for under 20 euros per person - a bit more than $25.
Business has been especially good at the location on Torneo Street, but he has felt the pinch of decreased consumer spending, with revenues falling since April by "15-20 percent, depending on the moment,” said Rojas.
Tax on a meal in a restaurant is set to increase two percent, from 8-10 percent, on September 1. Rojas is not worried. He said, “I am lucky. I increase the prices with the taxes and the price is two percent more. Maybe 20 cents, 50 cents per person. It is not a significant increase in prices.”
But the change in the reduced VAT rate will also apply to housing, transportation, eyeglasses, tickets to museums and hotel stays, among other things. The standard VAT rate, which is added on to the price of most products and services, will rise from 18-21 percent.  
Some items, like school supplies, will now fall into another category and be taxed 13 percent more. And that is certainly a significant difference for a country that once had one of the lowest tax rates in Europe.
Economist6 Javier Díaz-Giménez, of IESE Business School in Madrid, said "the highest rates are 23 percent in Greece, Portugal and Ireland, and now Spain is certainly moving above the average and getting closer to the maximum.”
Part of the austerity package announced in July by Spanish Prime Minister Mariano Rajoy, the tax increase is expected to bring about $25 billion into government coffers during the next two years - money Madrid desperately7 needs to hit tough European deficit8 targets.
Hike runs into opposition
But the measure has been met with fierce opposition.
The president of the national association of financial advisers9, Antonio Durán-Sindreu, told Spain’s public television that the tax increases will mean "death by asphyxiation10" for business, and that the government should have tried to stimulate11 consumption.
Instead, Spanish consumers will spend less, said Javier Díaz-Giménez. "I do not think anybody will win. I think some people will lose more than others. The tax burden, of any tax, is not borne equally by everybody."
Díaz-Giménez said higher taxes affect the poor disproportionately, and the tax burden increases by age.
Cutting corners
Pensioner12 Manuel Chaparro said he will cut back where he can, by eating out and driving less often.
And that is bad news for businesses.
Spain's tourism industry foresees losses of about $2.5 million annually13, affecting tens of thousands of jobs.
The automotive sector14 vehicle sales during the remaining months of this year will drop by 25,000.
Many retailers15, like the clothing chain Mango, have announced they will lower prices and absorb the cost of the higher tax to avoid losing sales.
Fernando Vázquez Rojas believes that for his restaurant the impact will be temporary, lasting16 maybe two months.
Vázquez Rojas is somewhat of a rarity - a risk-taking optimist17 in a country where hope and confidence in the future right now is in short supply.

点击收听单词发音收听单词发音  

1 fret wftzl     
v.(使)烦恼;(使)焦急;(使)腐蚀,(使)磨损
参考例句:
  • Don't fret.We'll get there on time.别着急,我们能准时到那里。
  • She'll fret herself to death one of these days.她总有一天会愁死的.
2 vat sKszW     
n.(=value added tax)增值税,大桶
参考例句:
  • The office is asking for the vat papers.办事处要有关增值税的文件。
  • His father emptied sacks of stale rye bread into the vat.他父亲把一袋袋发霉的黑面包倒进大桶里。
3 plunge 228zO     
v.跳入,(使)投入,(使)陷入;猛冲
参考例句:
  • Test pool's water temperature before you plunge in.在你跳入之前你应该测试水温。
  • That would plunge them in the broil of the two countries.那将会使他们陷入这两国的争斗之中。
4 initially 273xZ     
adv.最初,开始
参考例句:
  • The ban was initially opposed by the US.这一禁令首先遭到美国的反对。
  • Feathers initially developed from insect scales.羽毛最初由昆虫的翅瓣演化而来。
5 opposition eIUxU     
n.反对,敌对
参考例句:
  • The party leader is facing opposition in his own backyard.该党领袖在自己的党內遇到了反对。
  • The police tried to break down the prisoner's opposition.警察设法制住了那个囚犯的反抗。
6 economist AuhzVs     
n.经济学家,经济专家,节俭的人
参考例句:
  • He cast a professional economist's eyes on the problem.他以经济学行家的眼光审视这个问题。
  • He's an economist who thinks he knows all the answers.他是个经济学家,自以为什么都懂。
7 desperately cu7znp     
adv.极度渴望地,绝望地,孤注一掷地
参考例句:
  • He was desperately seeking a way to see her again.他正拼命想办法再见她一面。
  • He longed desperately to be back at home.他非常渴望回家。
8 deficit tmAzu     
n.亏空,亏损;赤字,逆差
参考例句:
  • The directors have reported a deficit of 2.5 million dollars.董事们报告赤字为250万美元。
  • We have a great deficit this year.我们今年有很大亏损。
9 advisers d4866a794d72d2a666da4e4803fdbf2e     
顾问,劝告者( adviser的名词复数 ); (指导大学新生学科问题等的)指导教授
参考例句:
  • a member of the President's favoured circle of advisers 总统宠爱的顾问班子中的一员
  • She withdrew to confer with her advisers before announcing a decision. 她先去请教顾问然后再宣布决定。
10 asphyxiation df310853a95d45c9d691f9e09b0cfdbb     
n. 窒息
参考例句:
  • Objective Inquiry into the heavy asphyxiation rescues measure of the new born. 摘要目的探讨新生儿重度窒息抢救的措施。
  • Self-contained breathing apparatus(SCBA) may be required to prevent asphyxiation of rescue personnel. 可能要求有自给式呼吸器(SCBA),以防止救援人员窒息。
11 stimulate wuSwL     
vt.刺激,使兴奋;激励,使…振奋
参考例句:
  • Your encouragement will stimulate me to further efforts.你的鼓励会激发我进一步努力。
  • Success will stimulate the people for fresh efforts.成功能鼓舞人们去作新的努力。
12 pensioner ClOzzW     
n.领养老金的人
参考例句:
  • The tax threshold for a single pensioner is$ 445.单身领退休年金者的纳税起点为445英镑。
  • It was the pensioner's vote late in the day that influenced the election of Mr.Sweet.最后是领取养老金者的选票影响了斯威特先生的当选。
13 annually VzYzNO     
adv.一年一次,每年
参考例句:
  • Many migratory birds visit this lake annually.许多候鸟每年到这个湖上作短期逗留。
  • They celebrate their wedding anniversary annually.他们每年庆祝一番结婚纪念日。
14 sector yjczYn     
n.部门,部分;防御地段,防区;扇形
参考例句:
  • The export sector will aid the economic recovery. 出口产业将促进经济复苏。
  • The enemy have attacked the British sector.敌人已进攻英国防区。
15 retailers 08ff8df43efeef1abfd3410ef6661c95     
零售商,零售店( retailer的名词复数 )
参考例句:
  • High street retailers reported a marked increase in sales before Christmas. 商业街的零售商报告说圣诞节前销售量显著提高。
  • Retailers have a statutory duty to provide goods suitable for their purpose. 零售商有为他们提供符合要求的货品的法定义务。
16 lasting IpCz02     
adj.永久的,永恒的;vbl.持续,维持
参考例句:
  • The lasting war debased the value of the dollar.持久的战争使美元贬值。
  • We hope for a lasting settlement of all these troubles.我们希望这些纠纷能获得永久的解决。
17 optimist g4Kzu     
n.乐观的人,乐观主义者
参考例句:
  • We are optimist and realist.我们是乐观主义者,又是现实主义者。
  • Peter,ever the optimist,said things were bound to improve.一向乐观的皮特说,事情必定是会好转的。
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