VAT increases

Dear Editor,

I am a member of a golf club in the Algarve.  All the members have had a letter from the management to inform them that from January 1 our annual fees have increased by 17% due to the increase in VAT.

In your article dated November 12, which I downloaded, it says it is still under discussion.

Could you please confirm this?

Patricia Bruce, By email

Editor’s note: Dear Patricia, golf associations in Portugal continue to fight the measure, but it seems very likely that VAT in golf will rise from 6% to 23% in 2012.

Dear Editor,

Green fees in Portugal are already uncompetitive relative to other countries.  Maybe this proposed increase in VAT will cause the industry to re-think their charges overall. 

Tom Gibson, By email

Dear Editor,

I note that the VAT rate on restaurant meals in Portugal is to go up from 13% to 23% in 2012, which is an eye watering rise of 77%. France has just announced a VAT rise on restaurant meals from 5.5% to 7% for 2012 (27% rise). 

I was in France recently and the feeling is that restaurants can probably hold their prices steady absorbing the VAT increases. 

France has not had a balanced budget in over 30 years and is terrified of losing its AAA rating. Of course, VAT on golf in Portugal may go up to 23% from 6% which is an even more eye popping rise of 283%.