Iceland Announces Package of Stability Measures

Iceland's government announced a package of stability measures on 12 October 2020 that have been presented in parliament together with the budget proposal and fiscal plan. The measures include the following:

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1. Extension of "Back to Work" initiative

The Government has decided that 100% reimbursement of value-added tax on labour, under the "Back to Work" campaign, will be extended through end-2021. The estimated cost of the reimbursements is roughly ISK 8bn.

2. Temporary payroll tax…