Prime Minister Calls for Increase in Individual Tax Credit Skip to content

Prime Minister Calls for Increase in Individual Tax Credit

Prime Minister Geir H. Haarde said in his keynote speech to the Althingi parliament yesterday that the tax credit for individuals should be increased and taxes lowered. Haarde said it was important to ensure a favorable taxation environment in Iceland.

The move would both benefit individuals and companies, Haarde said, and would improve the situation of low-income and average-income workers, Morgunbladid reports.

The prime minister added it was important to create a basis for Icelandic companies to have their headquarters in Iceland and a favorable taxation environment would certainly help persuade companies to stay.

“Stable earnings for the state budget are a prerequisite for further tax reductions,” Haarde said. “According to the proposed budget for 2008, the state treasury will have considerable a surplus, not just next year, but for the next four years.”

Haarde predicted that the expansion, which has characterized the Icelandic economy for the last few year, will cool down in the near future and that a period of increased stability and a balanced economy lies ahead.

Click here to read more about the status of the state budget in Iceland.

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