12 Jun, 2023 @ 10:15
1 min read

Spain’s government to keep VAT reduction on essential foodstuffs in place

Economy Minister Nadia Calviño
Photo: Gian Mattia D'Alberto / LaPresse.24

SPAIN’S economic affairs minister announced on Monday that the government would keep in place a current VAT reduction on essential foodstuffs, until prices have fallen to a more ‘adequate’ level. 

The cut in sales tax was one of a series of measures put in place by the Socialist Party-led coalition government, in response to the cost-of-living crisis sparked by Russia’s invasion of Ukraine. 

Speaking at a press conference, minister Nadia Calviño said on Monday the government had been considering which measures to keep in place, with a close focus on inflation. 

“I can confirm that we will keep the reduction in VAT on staple foods until we reach price levels that are more adequate,” she said on Monday in comments reported by Europa Press.

These reductions include a drop from 10% to 5% on cooking oil and pasta, as well as the total suspension of the 4% rate applied to essential foodstuffs. 

The measures were part of a decree approved by the government at the end of 2022, and were due to expire at the end of this month. The government, however, has stated that they will be maintained ‘should anomalous inflation situations persist’.

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Simon Hunter

Simon Hunter has been living in Madrid since the year 2000 and has worked as a journalist and translator practically since he arrived. For 16 years he was at the English Edition of Spanish daily EL PAÍS, editing the site from 2014 to 2022, and is currently one of the Spain reporters at The Times. He is also a voice actor, and can be heard telling passengers to "mind the gap" on Spain's AVLO high-speed trains.

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