Spanish government removes VAT on basic foodstuffs

The other shock measure adopted Tuesday morning during the last council of ministers of the year relates to the establishment of “aid of 200 euros” for families whose income is less than or equal to 27,000 euros per year.

mo12345lemonde with AFP

The Spanish government, on the left, announced Tuesday, December 27, the abolition of VAT on basic necessities in order to compensate for the sharp rise in prices, as well as a help of 200 euros for the most modest families.

These announcements are part of a new series of measures with a total value of 10 billion euros. This brings to 45 billion euros that of all the measures taken this year by the government to help the Spanish to face the explosion of inflation, said the Prime Minister, the socialist Pedro Sanchez, during His latest press conference of the year.

These new measures are focused on food products, the increase over one year reached 15.3 % in November. During the next six months, “VAT will drop from 4 % to 0 % for all basic necessities” such as bread, milk, cheese, fruits, vegetables or cereals, added Mr. Sanchez. VAT on oil and pasta will go from 10 % to 5 %.

proactive policy of combating inflation

The other shock measure adopted Tuesday morning during the last council of ministers of the year relates to the establishment of “aid of 200 euros” for families whose income is less than or equal to 27,000 euros per year, in order to “compensate for the rise in food prices”. On the other hand, the rebate of 20 cents per liter of fuel from which all motorists will currently benefit will be reserved, from 1 er January, to professionals in the “most affected sectors” by inflation, to Knowing carriers, farmers, maritime companies and fishermen, said Mr. Sanchez.

Since the beginning of the invasion of Ukraine by Russia, on February 24, the Spanish government has multiplied the aid to try to contain inflation, which has accelerated throughout Europe. After reaching a peak of 10.8 % in July in Spain, its highest level for thirty-eight years, inflation has gradually slowed down to situate 6.8 % in November. However, this drop does not yet affect the food sector, the prices of which continue to climb.

/Media reports cited above.