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Spain to maintain VAT reduction on food beyond June

The Local Spain
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Spain to maintain VAT reduction on food beyond June
VAT reduction on food products to continue in Spain beyond June. Photo: PASCAL PAVANI / AFP

The Spanish government will keep the VAT reduction on basic food products beyond June 30th, when it is due to expire.

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The plan was confirmed by the first vice president and the Minister for Economic Affairs, Nadia Calviño, who has refused to specify how much longer it was last beyond June, but assured that it will be maintained as long as food prices remain high.  

"We will maintain the VAT reduction on food until more appropriate price levels are reached," Calviño confirmed on a recent trip to New York.   

The government will incorporate this measure into the decree that will replace the current one, which is due to expire in just over two weeks.  

The VAT on products such as bread, milk, cheese, eggs, fruits, vegetables, and cereals has been reduced from four to 0 percent; and from 10 to five percent on oil and pasta.

Other measures against rising inflation that the government have in place include the automatic extension of rental contracts and the reduction on municipal and regional public transport.  

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The government has extended its offer of free train tickets on Cercanías, Rodalies (Catalonia) and Media Distancia, as well as on certain bus lines.  

According to socialist sources, the free ticket system "has worked and has been accepted by the public, with more than 2.4 million season tickets issued”.

READ ALSO - GUIDE: How to get free train tickets in Spain in 2023

However, it has not been confirmed if the 50 percent discount on season ticket prices for urban public transport, such as local metro services, will continue in all regions. Originally the government agreed to give a 30 percent discount, and each region could also contribute a further 20 percent, making a total of 50 percent. However, it is only in place in some regions on certain tickets and is also due to expire on June 30th.  

The VAT reduction on basic food items was originally brought in on January 1st 2023 to alleviate the inflationary consequences of the war in Ukraine.

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