Iceland Will Raise Taxes, Impose New Ones to Bridge Budget Gap

Iceland’s government will reduce public spending and introduce a new tax on financial institutions as it seeks to bridge a 42 billion-kronur ($356 million) gap in the budget, according to the island’s Finance Ministry.

The government presented the budget to parliament today. The equivalent of a value-added tax will be imposed on the north Atlantic island’s lenders, while the government plans to raise taxes for the use of natural resources, along with an increase in capital gains taxes.