Icelandic opposition ready to extend fuel tax cut

All Icelandic opposition parties say they are ready to convene parliament during its summer recess to extend a temporary cut to value-added tax on fuel, mbl.is reports.

The reduced rate is due to expire at the end of the month. Unless it is extended, VAT on fuel will rise from 11 per cent to 24 per cent.

Sigríður Á. Andersen, parliamentary group leader of the Centre Party, said the party would not stand in the way of lower taxes being approved. She said the Centre Party had called for a permanent solution rather than a temporary measure.

“We would not be the obstacle to ensuring lower taxes here,” Sigríður told mbl.is when asked whether the party would attend a parliamentary session during the summer recess if one were convened.

Ólafur Adolfsson, parliamentary group leader of the Independence Party, said convening parliament would be “a very good thing” and that his party was always ready for parliament to meet.

Stefán Vagn Stefánsson, parliamentary group leader of the Progressive Party, expressed a similar view, although he said the party had not discussed the matter internally. He said he could not imagine that Progressive Party lawmakers would be unwilling to attend parliament at any time during the summer to discuss the fuel tax reduction and other issues.

Stefán said this would be consistent with the party’s position in the spring that the reduction should remain in place beyond September 1. He added that lawmakers could “finish the matter before noon.”

Sigríður said the Centre Party had warned that difficulties would arise when the temporary measure expired and had urged the government to address fuel taxes permanently.

She said she was not optimistic that the government would extend the measure when parliament reconvened. “I have no faith in this government in anything,” she said, accusing it of failing to address Iceland’s economic problems.