Price of London Olympics Could Rise

LONDON, November 8. DUE to the Value Added Tax, which was not taken into account during the initial budget, the London Olympics could cost an additional $2.1 billion, according to reports. When estimating the $5 billion budget prior to bidding on the Games in November 2004, British Olympics Minister Tessa Jowell has admitted that a consumer tax was not considered.

The Value Added Tax, which reports say can be as high as 17.5 percent, is applied to business transactions, such as the hosting of the Olympic Games. Prime Minister Tony Blair didn't sound concerned over the possibility of added costs, as hosting the Olympic Games is a huge task. Indications are that construction costs will also be higher than expected.

"My understanding is that there are cost implications both up and down and that's what you would expect with a project like this," Blair said. "I don't doubt before the project is through there will be a series of ups and downs on the costs and every single aspect of it."

Name*

Email*

Welcome to our community. We invite you to join our discussion. Our community guidelines are simple: be respectful and constructive, keep on topic, and support your fellow commenters. Commenting signifies that you agree to our Terms of Use