Althingi, the Icelandic parliament voted to raise taxes on alcohol, tobacco, vehicle duty and fuel late last night.
Alcohol and tobacco duty will increase by 15 percent, vehicle licensing will increase by 10 percent and a litre of petrol will go up by 10 kronur, while a litre of diesel will cost five kronur more.
According to mbl.is, the 32 Social Democrat and Left Green MPs voted in favour of the bill while 22 members from the Independence Party, Progressive Party and Citizens’ Movement voted against it.
The government says the tax will help raise vital extra funds for the government; but it is expected to increase inflation by half a percent, meaning higher bills due to Iceland’s unusual inflation-indexed mortgages.
Independence Party MP Tryggvi Thor Herbertsson said the taxes will bring in ISK 2.7 billion this year, but cost householders an extra ISK 8 billion in higher bills.
mmhhh I must disagree …. during tough times it’s the worst path to follow, imo
Did they know how evil ‘prohibitionism’ was ? ;)
WTF!!
As said before same clowns in power but with a different mask!!
The trick is to trap people in as much debt so they cant escape. It is inconceivable that the people of the nation still leaving in Draumaland and keeps putting up with the fake hopes and the fictional stories. If people dont fight for their right, they deserve to be F\ck all the way, thats the reality. Many of the nationals are GUILTY in all counts.
this amazes me. even if you don’t drink, smoke or drive a car if you are a home owner your mortgage increases due to inflation index loan. this is absurd. why is this system still in place? who is making out on this other than the banks? and why is nothing being done to change this.
Well, the good news is that since we – the public – own banks (remember – they were bailed out with our money) – we’ll get extra 8 billions :-)… he-he
So, still believe in fair and just democracy? And “new” government/parliament? Good luck then…
Yeah but who is surprised? The ‘sin’ taxes are always the easiest to raise. Except that nearly everyone drives in Iceland so that won’t be popular however this is the time to raise them while oil prices are lowish. Fuel prices will soon go way up and the blame won’t be taxes so the timing is clever.
The loan indexing is really bizarre. That must go away if people are to have any hope of escaping debt.
This country is a joke, nothing but a joke, they are just single handedly creting mor inflation fom one night to the next morning, the moment fuel goes up evrything els goes up.
>who is making out on this other than the banks?
The situation now is different to that in the past. Previously, I’m assuming that the rich in Iceland benefited. But now it’s the banks and therefore, the Icelandic people.
Guess what’s coming, new taxes and more taxes. Slavery I would say. This is what is happening all over the world, you now work for the government and the government will take money from your pockets whenever they want and there is nothing you can do about it. And they will spend it all they want. Dare to challenge the government aside from talking and protesting? I don’t think so.
Gasoline almost 17 Krona up in one day (24Hrs.), and not just because of oil price going up, but with the blessed helping hand of the goberment, so expect for about a 10% increase in consumer goods Wellcome to ZIMBAWE!!
So much for a “new” “left” goberment.
Doctor Tryggvi Thor Herbertsson is quite correct.
The situation now is different to that in the past. Previously, I’m assuming that the rich in Iceland benefited. But now it’s the banks and therefore, the Icelandic people.
I already feel it, Bromley86. I mean I feel my benefits….
Just in case it isn’t clear Alexander, here’s the situation.
The new banks need capital. The government (aka the taxpayer) will provide that capital. The new banks own the domestic debts. If those debts are of a lower value then the government will have to provide more capital.
So you might not feel any benefit, but that’s because the recapitalisation has not happened. Anyway, even then, you won’t perceive a benefit as we’re just talking about a very painful situation and a slighly less, but still very, painful situation. And we’re dealing with borrowed money anyway, so the effect will be spread out over the next X years.
Not that I’m defending indexation. I’m just pointing out that helping people who’ve been “a little heedless” comes with a cost (which should be obvious, but there appears to be a large degree of confusion over in Iceland ATM).
Which, incidentally, is another reason why your direct democracy isn’t the best form of government. You can’t expect people to make the “right” decision in cases like this.
– So you might not feel any benefit, but that’s because the recapitalisation has not happened —
Could I ask you a favor, Bromley86? Please don’t use such words as capital, capitalization etc. I know WHAT they mean. I mean that they mean nothing. The “king is nude” no matter what you call it. The whole meaning of finance has been been lost – due to nice terms. The world was playing fine in the books – but in real life money don’t appear from “capitalization” FOREVER.
So you are much better to decide what better for “common” people, aren’t you? Or other “professionals…like David Oddsson?
You also missed the point – I’m not talking about direct governing. Government is executive body.
Sure thing Alexander. What word do you want to use for the government putting ~$2bn into the banks?
Second grade question :-)
I would use the word PROMISE. As government didn’t have that money. They promised them. It’s called in “financial” world – budget deficit.
I assume you do understand that government doesn’t make money. It can print banknotes or write down numbers into balance sh*t – but it CAN NOT make money. Well I’m sure they think they can – that’s why we have this crisis (in part of course).
PS. I did this “capitalization” several times. Looks fine on paper and works as long as all parties agree to “trust” each other promises ;-)
EACH YEAR OR TWO I USE TO BUY A NEW LAP-TOP, THIS TIME I WAS REALLY LUCKY… I BOUGHT A MACBOOK AIR AROUND OCTOBER FOR 204.000 ISK, TODAY THE PRICE FOR THE SAME COMPUTER, JUST AFTER 6 MONTHS, IS AROUND 350.000, AND IT IS THE SAME MODEL,
THIS IS VERY VERY BAD… SINCE OCTOBER I HAVE NOTICED A HUGE INCREASE IN THE PRICE OF MOST OF THE THINGS. THING THAT WHERE AT 1.000 ARE TO BE FOUND FOR AT LEAST 1.500 NOW, SOME PRODUCTS HAVE DOUBLED IN PRICE
ALSO EVERYONE, LIKE IN A REACTION OF PANIC, IS SELLING EVERYTHING AT A HIGHER PRICE WHENEVER POSSIBLE. THE SEARCHING FOR SURVIVING IS PLAYING NEGATIVELY FOR THE ECONOMY AND ACCELERATING THE CHAOS. AS MANY PEOPLE HAVE SAID HERE, PEOPLE ALSO MAKE THE ECONOMY…
WHAT DOES THIS ALL MEAN?? THAT THE ICELANDIC ECONOMY IS GOING DOWN FOR A LONG TIME AND IS NOT FOR COMING UP AND STRONG AGAIN SOMETIME SOON.
THIS IS JUST THE BEGINNING, THERE ARE MANY OTHER THINGS THAT WE ARE ABOUT TO NOTICE, SPECIALLY DURING THE NEXT WINTER. IF THIS WINTER HAS BEEN A NIGHTMARE, THE NEXT IS GOING TO BE THE CRUEL REALITY.
NOW THEY ARE GOING TO START LIFTING THE LIMITATIONS IMPOSED TO THE KRONA, AND, YOU WILL ALL SEE MY PREDICTIONS FOR THIS SUMMER TO COME TRUE. THE KRONA IS GOING TO GO FOR 250 PER EURO AND NOTHING DOWN THAT FOR A LONG TIME. AND WE CAN START PRAYING FOR THIS NOT TO BE AN AUTHENTIC DISASTER, WELL, IS GOING TO BE AN AUTHENTIC DISASTER AND WE ALL KNOW IT. I AM SERIOUSLY STARTING TO FEEL SORRY FOR THE ICELANDERS AND ICELAND.
I TRULY DON´T THINK THAT ICELANDERS CAN MANAGE THIS SITUATION ON THEIR OWN. THE WORST OF ALL THE ANTI-EU CULTURE IS THAT IS GOING TO DRIVE THIS NATION TO A SAD SITUATION. AND AFTER THAT, I HOPE ICELANDERS WILL FINALLY OPEN THEIR EYES.
ICELAND IS MELTING DOWN !!
THIS COUNTRY HAS BEEN (AND PROVABLY STILL IS) IN THE HANDS OF A PUNCH OF INCOMPETENT PEOPLE.
I AM SO TIRED OF HEARING THE SAME STUFF ABOUT INDEPENDENCE AND THE LIKE… JUST FUNNY… WHAT DOES INDEPENDENCE MEAN TODAY? AND IN WICH SENSE?
WE EAT FOOD, CONSUME CLOTHES, CARS, COMPUTERS, ETC… THAT COME FROM ALL THE CORNERS OF THE WORLD… AND THEN THEY SAY THIS COUNTRY IS INDEPENDENT, AND NOW ICELAND LIVES ON THE IMF AND LOANS FROM OTHER COUNTRIES…
OF COURSE THE HAVE TO INCREASE THE PRICES AND THE TAXES IN ANYTHING … WHERE ARE THEY GOING TO GET THE MONEY FROM?? I AM GOING TO TELL YOU: FROM THOSE COMPANIES THAT ARE ABLE TO MAKE SOME FOREIGN CASH, AND FROM ANYTHING COMING FROM ABROAD SO PEOPLE WILL STOP BUYING IT OR PAYING FOR DOING IT…
CUBA ??
FIRST GOVERNED BY A PUNCH OF HEARTLESS CAPITALISTS AND NOW BY A CROWD OF COMMUNISTS… GOD HELP THIS COUNTRY…
I am not so concerned with getting 2 billion into the governement coffers. We all know that is needed. My issue is the 8 billion that it cost the people to put 2 billion in.
Perhaps it would have been more effective to make a yearly “Kennital tax”. Make it 8000 kr for every kennital in use within Iceland, )personnel and business).
In the case of “personnel” it would just get tagged on right next to the new TV tax on the tax returns. So, if a person has 3 kids they claim on taxes then they pay 32000kr straight out. One shot every year.
In the case of “business” it would be 8000 kr per kennital billed to the company, also obtainable via tax system. In the case of a company kennital that does not file taxes (becuase it generates no real revenue), then you bill to the registering individual. If it is not paid then the company is listed as insolvent and the kennital inactivated. (Seems there are well over a 100,000 business kennital.)
It may seem to be a silly idea, but lots of silly ideas lately. This one would likely generate 3-4 billion yearly into the governement coffers.
Given the events from last year and the collapse of the money why is anyone surprised that things are starting to get bad? This is what happens and is only just starting. Somehow we can fix this and in the meantime life goes on without any difference? I’m crying because I can’t buy a new high end lap top for the same price as last year….. Give me a break.
I’m upset too but I’m already used to being poor. My 4 year old lap top will have to last a while longer. boo hoo.
Busyness is slow because of the banks are being reconstructed and reorganized, but its not like the economy has stopped, people just don’t take loans anymore if they can avoid it,
IH car dealer had a sale on some new 2008 cars at the price that was being used just before the banks crashed for the first 10 cars, then they added 300k to that price for the rest, they sold 200 cars in 2 days, so its hardly as bad as some people seem desperate to state, far from it actually.
yes, it’s far from the worst actually, Axel.
The problem of this “new” parliament and “new” government – they DON’T know how to run the country. And they can raise taxes by 50% if they wish but this won’t bring more money as sales will go down faster than taxes increase.
Why do you think they raised taxes on gas, tobacco and alcohol? Because these products are less dependent on the state of economy – as people usually keep drinking, smoking and driving till the last breath. But this is not how the country prospers. Not from taxes. It only prospers if the economy is working. But so far I see no sign of “new leaders” of the country to help business moving forward. By help I don’t mean making plans of “who must do what” but rather creating environment at least not hostile for business.
In simple terms – it’s better to have 1% tax from 1,000,000 turnover than 50% from 1,000 turnover.
PS. And gasolin prices rise will drive ALL other prices up for sure.
BTW I’m wondering how long this “new” guys will keep power? Till next Xmas?
THE INTERNATIONAL ASSOCIATION FOR THE STUDY OF PAIN IS NOW THINKING ABOUT ICELAND AS ITS NEXT OBJECTIVE. THEY WANT TO FIND OUT HOW ICELANDERS FEEL AFTER THEY HAVE TURNED FROM VERY RICH TO POOR, AND HOW THEY FEEL ABOUT THE ICELANDIC KRÓNA BEING TOTALLY WORTHLESS…
HAHAHAHA, ;-)
AND NOW TAXES UP!!! THEY NOW THAT ICELANDERS IN MASS HAVE FOUND REFUGE AT THE BARS, DOING THE USUAL THING THEY DO WHEN THEY HAVE PROBLEMS, DRINKING TO FORGET… ALCOHOLISM, DRUG USE AND PROSTITUTION HAVE INCREASED A 200% IN ICELAND SINCE OCTOBER…
SO THE GOVERNMENT KNOWS THEY ARE GOING TO GET A LOT THROUGH TAXES ON THOSE THINGS…
Global Peace Index Rankings 2009
Iceland is on 4th place. Spain is on … 28th.
No comments :)
Source: http://www.visionofhumanity.org/gpi/results/rankings/2009/
@Balkanson
Who cares about that???
plus thats info released in 2009 from statistics from 2008, so just give it time.
According to this bunch of upsidedown guys from Australia Iceland didn’t even exist in 2007
http://www.visionofhumanity.org/gpi/results/rankings/2007/
And according to these upside downs Romania is more safe and peaceful then Estonia. Give me a break.
One more NGO that even hides who they are.
But after fuel and tobacco prices jump Iceland might be much less safer place for sure. At least criminal records show that number of break-ins increased by as much as 70% to the same period last year :-(