The UK and Gibraltar have proposed a Transaction Tax of 10% instead of the application of VAT at 21% in the treaty negotiations and this has been rejected by Spain, according to a report in the Campo daily Europa Sur.
RESOLUTION
This suggests that far from there being an agreement on the table, as the Spanish Foreign Minister has constantly repeated, there are still many more areas awaiting a final resolution. Indeed, the Governor Vice Admiral Sir David Steel, recently told the UK media that the reasons why a treaty had not yet been agreed was because Madrid introduced new issues at the last minute including some sort of jurisdiction over the airport area.