The Spanish government, on the left, announced Tuesday, December 27 the abolition of VAT on basic necessities in order to compensate for the sharp rise in prices, as well as aid of 200 euros for the most modest families.
These announcements are part of a new series of measures worth a total of 10 billion euros. This brings to 45 billion euros that of all the measures taken this year by the government to help the Spaniards to face the explosion of inflation, specified the Prime Minister, the socialist Pedro Sanchez, during his last press conference of the year.
These new measures are centered on food products, whose year-on-year increase reached 15.3% in November. During the next six months, “VAT will drop from 4% to 0% for all basic necessities” such as bread, milk, cheese, fruits, vegetables or cereals, added Mr. Sanchez. VAT on oil and pasta will drop from 10% to 5%.
Proactive policy against inflation
The other shock measure adopted on Tuesday morning during the last Council of Ministers of the year relates to the establishment of a “help of 200 euros” for families whose income is less than or equal to 27,000 euros per year, in order to “compensate for rising food prices”. On the other hand, the rebate of 20 centimes per liter of fuel which all motorists currently benefit from will be reserved, from 1er January, to professionals of “most affected sectors” by inflation, namely carriers, farmers, shipping companies and fishermen, Mr. Sanchez said.
Since the beginning of the invasion of Ukraine by Russia, on February 24, the Spanish government has multiplied aid to try to contain inflation, which has accelerated throughout Europe. After reaching a peak of 10.8% in July in Spain, its highest level for thirty-eight years, inflation gradually slowed to stand at 6.8% in November. However, this decline has not yet affected the food sector, whose prices continue to climb.