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From 1 July the general VAT increase from 16 to 18% and VAT will be reduced by 8% from 7% now.
This was reflected in the Bill of General State Budget for 2010.
In this situation, it will be an immediate increase in prices, the Popular Party of Alguazas has filed a motion in Parliament in May to support regular consumers.
It has also been calling out a plan for information and awareness to prevent prices rounding up.
Councillor for Finance, Alicia Parejo, explained that the VAT increase will cause a decline in consumption and will be a step back in Spain's economic recovery.
He has also said that this rise will hurt, especially to the poorer classes, with the rising prices, lost purchasing power.
For his part, Mayor Alguazas, José Antonio Fernández Lladó, added that when the situation is critical, as the present, we can not require the middle and lower class continue to sacrifice.
Alguaceño The mayor has said that the VAT increase will hurt the consumer and the recall of 1,500 to 2,000 million euros.
Facts that will lead to an increase in the rate of unemployment in Spain and over 20%.
The Municipal People's Party has argued this motion based on the precedents of 1995 when, faced a similar situation and being the current Economy Minister Pedro Solbes, climbed the VAT and the result was a lower tax revenues and a decline in the economy.
The motion, which was adopted in plenary with the votes for the Popular Party and vote against the Socialist Party, urged the National Government to rectify the Draft Law on State Budget for 2010 in paragraph Tax Standards.
Source: Ayuntamiento de Alguazas
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