Laugarás Lagoon may put its expansion plans on hold. Managing director Bryndís Björnsdóttir stated that a planned tax hike is the primary cause. The government intends to raise the VAT on geothermal lagoons from 11% to 24%. This increase significantly alters the financial outlook for the site. The company must now re-evaluate how much more it can invest. Management will decide if further development remains viable under these new costs. This decision depends on the final tax implementation.