Spanish government suspends sales tax on basic foods: these are the products that will benefit

The latest cost-of-living crisis measure in Spain also includes an IVA reduction, from 10 to 5%, for cooking oil and pasta

SUR MALAGA.

The Government has announced its new package of measures to deal with the economic crisis in Spain and this time they will have a direct impact on the shopping baskets of the nation.

This Tuesday morning, 27 December, prime minister Pedro Sánchez announced the suspension of IVA sales tax, from January to June, on basic foods with the previous 4% super-reduced rate, in addition to the reduction of the tax, from 10 to 5%, for cooking oil and pasta.

This is one of the main measures included in the new anti-crisis package that will come into force on January 1 and that is complemented by others such as limiting rental prices and discounts on public transport.

These measures will come into force in 2023, but which food products will it affect? This is the list of basic foods that already have the super-reduced IVA rate of 4% and that as of January will not have a sales tax:

• Bread and bread-making flours

• Milk and cheese

• Eggs

• Fruits, vegetables and legumes

• Cereals

The Government is going to ensure that the IVA reductions are immediately transferred to food prices, said Sánchez.

IVA on food in Spain varies between the reduced rate (10%) and the super-reduced rate (4%). Food products are considered to be those that can be used as food for humans or animals.

All these products are subject to 10% IVA (meat, fish, oil or pasta), except those that are considered essential foods such as milk, eggs, fruits and vegetables, bread or legumes and that are taxed with the super-reduced rate of 4%.

However, there are certain foods that do not fit into any of these categories, such as sugary or alcoholic beverages, to which the general IVA rate of 21% is applied.