The Minister of Agriculture, Luis Planas, ruled out this Thursday expand the list of foods affected by the VAT reduction and has opened the door to supermarkets begin to apply zero VAT to olive oil on their own initiative from this moment, through promotions, waiting for the parliamentary processing of the bill to conclude and the measure to appear published in the Official State Gazette (BOE).
During his speech after a meeting with the employers of the distribution Anged, Asedas and Aces, and after yesterday the Government managed to validate the anti-crisis decree thanks to the transfers to Junts, including the reduction of VAT on olive oil from 5% to 0%Planas has framed the change of opinion regarding this basic food in the necessary “parliamentary negotiation” to move forward with the rule.
In this sense, the minister explained that, together with the Ministry of Finance, the possibility of eliminating VAT on oil was assessed, in terms of income and expenses, and it was concluded that it was possible to carry out this reduction in one of the products that “were already identified” by the Government.
However, the head of Agriculture has ruled out expanding the list of basic foods affected by the VAT reductionand include, for example, meat or fish, as employers in the field of distribution and the food industry have been demanding, as well as the Popular Party from the opposition. Likewise, Planas has refused to incorporate additional discounts on foods already affected during the parliamentary process.
Regarding the new VAT reduction on olive oil, which has increased its price in supermarkets by 70% in the last year, according to the consumer association Facua, Planas has announced that it will come into force when the bill is approved and publish in the BOE. However, it has left it to the supermarkets’ free decision to begin applying the equivalent of the tax reduction from this moment through promotions.