IMF urges Spain to raise taxes to cut budget deficitJune 15, 2012 - 21:40 AMT PanARMENIAN.Net - Spain should raise taxes and cut government workers' pay to narrow its budget deficit, the International Monetary Fund said Friday, June 15, according to The Associated Press. The international lending group said Spain's deficit is likely to exceed estimates and the government should therefore consider several measures to boost tax revenue. The IMF suggests the government increase in its value-added tax, or VAT, which is a type of sales tax. Spain should also eliminate a deduction on mortgage payments for first-time homebuyers, which was recently reintroduced, the report notes. Spain's Prime Minister Mariano Rajoy has resisted increases in the VAT. The previous government boosted it to 18 per cent in 2010, though it remains one of the lowest in Europe. Spain set a goal of reducing its deficit to 5.3 per cent of gross domestic product, or GDP, in 2012. The IMF report called that goal "very ambitious" and said it would "likely be missed." Most of the planned reduction in the budget deficit in the next few years comes from spending cuts, the IMF's report said. But those cuts have yet to be specified, which makes it more likely that the deficit will "significantly overshoot targets" through 2015, the report said. Top stories Yerevan has dismissed Turkey’s demand to shut down the Armenian nuclear power plant as “inappropriate”. Armenia will loan 2.9 billion drams to Nagorno Karabakh (Artsakh), according to a draft government decision. The Ministry of Ecology and Natural Resources of Azerbaijan has “strongly condemned” Armenia’s decision. Kerobyan has said that for the first time in the history of Armenia, the volume of foreign direct investments amounted to about $1 billion. Partner news | Ucom equips four bus stops in Ijevan with free Wi-Fi Ucom now provides free Wi-Fi coverage in smart bus stops in four communities of Ijevan. Armenians stage more campaigns against territorial concessions to Azerbaijan Protesters blocked more roads across Armenia on Friday, April 26 in continuing attempts to scuttle territorial concessions to Azerbaijan. Czech-Armenian military cooperation discussed in Yerevan A delegation led by the Director General for the Industrial Cooperation Division of the Ministry of Defence of the Czech Republic visited Armenia. U.S. welcomes efforts to define Armenia-Azerbaijan border The United States welcomes efforts to define the border between Armenia and Azerbaijan, says Vedant Patel. |