Progressive Party MPs Willum Þór Þórsson and Frosti Sigurjónsson stated at Alþingi, the Icelandic parliament, yesterday evening that the party’s parliamentarians had issued a formal disclaimer to the changes to the taxation system as presented in the budget bill.
The budget bill was presented to parliament last week by Minister of Finance Bjarni Benediktsson of the Independence Party, the Progressive Party’s coalition partner in the government.
The bill includes significant changes to the taxation system, the most disputed of which concerns an increase of the lower VAT step from 7 to 12 percent, which would result in a higher price of groceries, among other consequences, ruv.is reports.
Frosti stated that if measures designed to counteract the tax increases won’t prove effective, the budget bill must be amended.
