Parties reject August session to extend fuel VAT cut

The Social Democratic Alliance and the People’s Party do not want Parliament to be convened in August to extend the temporary reduction in value-added tax on fuel, mbl.is reports. The opposition wants an August session, but the VAT rate is therefore set to rise from 11% to 24% at the end of the month.

“This is part of a larger package. Parliament convenes on 8 September, when the budget bill will be presented. It will then become clear whether this temporary reduction will continue,” Ásthildur Lóa Þórsdóttir, chair of the People’s Party parliamentary group, told Morgunblaðið.

She said the issue would be addressed in Parliament alongside the budget bill in September and that she did not expect a short parliamentary session to be called in August.

Guðmundur Ari Sigurjónsson, chair of the Social Democratic Alliance parliamentary group, expressed the same view. Mbl.is was unable to reach Sigmar Guðmundsson, chair of the Reform Party parliamentary group, on Tuesday.

Sigríður Andersen, chair of the Centre Party parliamentary group, said the party would not stand in the way of reducing taxes for vehicle owners.