Many Spanish retailers indicated that they would not completely pass on to consumers the increase of 18 to 21 percent in the VAT rate instituted by the Spanish government on Sept. 1 to help reduce its budget deficit. Décathlon said it would apply it only to products that are not used daily for the practice of sports. The National Federation of Sports Establishments expressed strong worries for the 4,000 people employed at the 650 health and fitness centers operating in Spain because the VAT on their membership fees has been raised from 8 to 21 percent. A similar increase implemented in Portugal last year reportedly led to a 16 percent drop in the revenues of the nation's gyms.

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