FACUA rejects a VAT increase that is eroding consumers purchasing power and is impoverishing them

FACUA-Consumers in Action categorically rejects the VAT increase announced by the Prime Minister, Mariano Rajoy, who sets overall tax to 21% and the reduced rate of VAT to 10%.

To the organisation, this rise in consumption tax substantially decreases the already low consumer purchasing power, while consumers still have to face up to measures such as the reduction of unemployment benefits or the removal of civil servants’ year-end bonus.

FACUA alerts that products as essential as some types of food, drugs, or prostheses, and basic services like health, culture, sports, public transport or water supply are no longer taxed at 8% as reduced VAT for social criteria, and will rise up to 10%.

The organisation does not understand how the Government pretends to rescue