Tour operators have hit out at proposals to more than treble VAT on accommodation, restaurant meals and attractions in Iceland.
The country’s government is planning to increase VAT from 7% to 25.5% from May 1 2013, a move which operators say is a "stinging rebuke" against anyone investing in the country.
"This tax rise is being introduced at the start of the inbound tourism season, just when it will do the most damage," said Tom Jenkins ETOA chief executive.
"It penalises any operator who has signed contracts and published brochures featuring Iceland next year. No company can absorb such a surcharge."
by Bev Fearis
