The Government will eliminate VAT on olive oil bottles starting next July 1. The Ministry of Finance will take the application of a 0% rate to this product for approval by the Council of Ministers on Tuesday, as reported by Cadena SER and confirmed by the Treasury to Europa Press.
The measure was agreed in January between the PSOE and Junts to carry out the anti-crisis plan and the omnibus decree. Oil, which has already gone from 10% to 5% VAT in 2023, will now be part of the group of essential products – bread, flour, milk, cheese, eggs, fruits and vegetables – that have a rate of 0% since last year (instead of the 4% that applied until then). That measure was extended until June 30.
According to the Treasury, the incorporation of oil into staple foods aims to protect and encourage the consumption of this product, whose price has recently become more expensive as a result of the drought, among other reasons.
In fact, according to data from the National Institute of Statistics (INE) from the CPI, olive oil was 68.1% more expensive in April than a year before, and has accumulated a rise of 204.8% since January 2021, which means that its cost has tripled in the last three years.
Source: www.eldiario.es
