21 Jun, 2024 @ 11:26
1 min read

Spain to remove tax on olive oil and brands product a ‘necessity’ following spike in prices

THE Spanish government has decided to remove VAT on olive oil in a bid to bring the price of the Mediterranean staple down.

This decision elevates olive oil to the status of a staple food, joining the ranks of bread, eggs, fruits, and vegetables, which already enjoy a reduced VAT rate.

This initiative will see olive oil transition from the 10% reduced VAT category to the super-reduced VAT category, currently set at 4%. 

This decision follows a temporary VAT reduction from 10% to 5% implemented in 2023 to combat the soaring prices of olive oil.

READ MORE: Deadly flesh-eating bacteria currently sweeping Japan is already in Spain, say experts – but there’s no need to panic

Photos of olive oil on the shelves of a Sevilla supermarket
Olive oil prices had risen so high some shops have taken to only stocking photos of the product on their shelves

The move comes at a crucial time for olive oil producers, who have been grappling with rising production costs and a global supply shortage. 

The recent rains have brought hope for a rebound in olive oil production, and the VAT elimination is expected to further boost the industry’s recovery.

The government’s decision has been met with widespread praise from consumer groups and industry representatives alike. 

Consumers can anticipate a noticeable reduction in olive oil prices, particularly once the summer season ends. 

This is expected to have a positive impact on overall household expenses, especially for families that rely heavily on olive oil in their cooking.

Olive oil holds a special place in Spanish culture and cuisine, deeply ingrained in the country’s culinary traditions and identity. 

The Spanish government’s decision to eliminate VAT is expected to have a positive impact on the economy, promoting food security, supporting the agricultural sector, and alleviating the financial burden on Spanish households.

Walter Finch

Walter - or Walt to most people - is a former and sometimes still photographer and filmmaker who likes to dig under the surface.
A NCTJ-trained journalist, he came to the Costa del Sol - Gibraltar hotspot from the Daily Mail in 2022 to report on organised crime, corruption, financial fraud and a little bit of whatever is going on.
Got a story? walter@theolivepress.es
@waltfinc

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