- Spain will eliminate value-added tax (VAT) on olive oil sales.
- The measure is part of the government’s strategy to curb inflation and address the cost-of-living crisis.
- The new measures are expected to be fast-tracked into law with no objections from opposition parties.
- Recent inflation in Spain has been caused by increased energy costs, global food instability, and poor harvests due to droughts.
- The average annual household shopping basket in Spain has surged by €800, with olive oil experiencing significant price hikes.
- The Spanish government introduced measures in 2023, including the elimination of VAT on staple foods and a reduced rate on other foodstuffs.
- The new resolution will extend these measures until June 30th and eliminate VAT on olive oil, pasta, and seeds.
- The agreement was reached after meetings between government ministries, agencies, and interest groups representing olive oil producers, farmers, supermarkets, and wholesalers.
- The measures apply only to retail sales to avoid increasing corporate profit margins.
- Portugal, which eliminated VAT on olive oil and other foodstuffs, failed to renew or extend its relief measures.
- Food security is a high priority for the Spanish government, and they have announced a National Food Strategy to address challenges in food production and ensure autonomy.
Source: oliveoiltimes.com
Note that this post was (partially) written with the help of AI. It is always useful to review the original source material, and where needed to obtain (local) advice from a specialist.
