Planned tax hike puts Hvammsvík expansion on hold

Skúli Mogensen says a proposed tax increase on bathing lagoons is one reason a multibillion-krona expansion at the Hvammsvík sea baths has been put on hold, mbl.is reported.

Mogensen, the baths’ founder, said the planned investment totals about 5 billion krónur over the next three years. If the tax increase goes ahead, the company will have to reconsider its plans, he said.

He said he does not believe the increase would raise the state’s net revenue and called it “very shortsighted,” warning it could harm tourism and its continued growth. Mogensen and his family have built the baths into a popular destination.