MADRID (AP) — Spain will quickly eradicate the gross sales tax on olive oil to assist customers address skyrocketing costs, the federal government mentioned Tuesday.
Spain is the world’s main producer and exporter of olive oil, however its price for home customers has risen dramatically attributable to international inflationary pressures and a protracted drought that decimated provides. Costs have additionally surged in different Mediterranean nations.
The worth of olive oil has elevated by 272% since September 2020, in keeping with Spain’s agriculture ministry. A five-liter bottle of olive oil can price over 50 euros ($53) at a Spanish grocery store.
Spaniards use olive oil to prepare dinner and to garnish sandwiches, salads, greens and different dishes. Final yr Spanish households consumed on common 6 liters per particular person, in comparison with 0.4 liters for worldwide customers, in keeping with the agriculture ministry. However the rise in costs has made some swap to cheaper cooking oils.
The federal government had already slashed the gross sales tax on olive oil from 10% to five% as a part of an anti-inflation package deal.
No gross sales tax shall be utilized to olive oil from July by means of September, when it will likely be taxed at 2% till the top of the yr. From then on, it will likely be taxed at 4% and be thought of a fundamental meals stuff.
Spanish Treasury Minister María Jesús Montero mentioned the choice displays “the significance of olive oil within the Mediterranean weight loss program and a wholesome life-style.”
