Business leader criticises proposed tax and levy increases

The chairman of the Confederation of Icelandic Enterprise has criticised proposed increases to the bank tax and charges on tourism, saying they could undermine investment and competitiveness, mbl.is reported.

Jón Ólafur Halldórsson made the comments in his opening address at the organisation’s annual meeting yesterday. He said businesses were part of society, not outsiders or simply an “ATM” for the state to draw on when times were hard. The government could not call for more investment and higher living standards while weakening trust in the businesses expected to deliver them, he said.

He warned that higher bank taxes could make borrowing more expensive for households and businesses, while increased taxes and fees on tourism could weaken the competitiveness of an industry that creates jobs across the country. He said it was contradictory to call for more investment while placing heavier burdens on development.

Jón Ólafur also said companies were workplaces that supported families and communities, and warned that it was dangerous when political debate fuelled hostility between groups in society. He said businesses were ready to take responsibility, and that national competitiveness and people’s living standards should be a shared priority.