Faced with the crisis, Spain abolishes VAT on basic foodstuffs

The Spanish government announced on Tuesday 27 December 2022 a series of measures aimed at mitigating the impact of inflation in the food sector, including the total abolition of VAT on basic necessities. Something that interests cross-border commuters and fans of travel to Spain

Bread, milk, cheese, fruit, vegetables and cereals are no longer subject to VAT from 1eh January 2022 in Spain. This is what Prime Minister Pedro Sánchez has just announced to help Spaniards cope with the inflation explosion.

VAT drops from 4% to 0% for all basic necessities ” declared Mr. Sánchez during a press conference. The VAT on oil and pasta will go from 10% to 5%.

Compared to previous aid packages, which primarily targeted energy (electricity and gas), the measures taken on Tuesday are centered on food, whose year-on-year increase reached 15.3% in November. These measures should be of interest to Occitan residents who regularly travel to Spain. On the other hand, for gasoline, the government’s 20-cent rebate is set to expire on December 31.

The second shock measure adopted on Tuesday morning concerns the establishment of assistance of 200 euros, paid once, in favor of families whose income does not exceed 27,000 euros per year, in order to “offset rising food prices“, Mr. Sánchez explained.

Since the Russian invasion of Ukraine on February 24, the Spanish government has multiplied aid to help the poorest households cope with inflation, which has exploded across Europe.

After peaking at 10.8% in July, the highest level in 38 years, inflation has gradually eased to 6.8% in November. However, this decrease does not yet affect the food sector, whose prices continue to rise.

(With AFP)

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