Faced with inflation, the government temporarily abolishes VAT on olive oil

Faced with inflation, the government temporarily abolishes VAT on olive oil
Faced with inflation, the government temporarily abolishes VAT on olive oil

The socialist government of Pedro Sanchez is continuing its tax policy, the objective of which is to reduce the cost of the household basket, which is increasingly difficult to afford for a large part of the population, generally the victim of galloping inflation. In an exemplary manner, he lowered the VAT on olive oil to 0%.

With our correspondent in Madrid, Francois Musseau

Now, when we talk about olive oil in Spain, its main world producer, we often say “liquid gold”. This is not a new expression, it has often been used to refer to its nutritional quality and its central role in what we call the Mediterranean diet.

Dear, very dear

But today the expression refers mainly to the fact that olive oil is expensive, very expensive. You should count on no less than 9 euros per liter for average quality olive oil, and 13.60 euros for extra virgin olive oil. That is +40% in one year and three times more since 2021.

Given that it is a widely used, consumed and appreciated product, the government now lists it as a basic necessity, like bread or milk. Hence the fact that the Ministry of the Economy has reduced its VAT to 0%.

Nectar

Within a year, this temporary VAT will be increased to 4%, like most so-called essential products and, according to the authorities, should no longer increase thereafter. A way to make this nectar that the Spanish love so much more attractive.

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