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The Spanish government said on the 25th that it would suspend the collection of value-added tax on the sale of olive oil by enterprises. Spain's finance minister said the move would help ease the financial burden on consumers against the backdrop of continued high olive oil prices.
The Spanish Chancellor of Finance said at a press conference on the 25th that the VAT rate levied on the sale of olive oil by businesses will be reduced to zero starting July 1 this year, and this measure will continue until September 30. From October 1 to December 31, this rate will also remain at a low level of 2%. In response to high inflation, the Spanish government has already lowered the VAT rate on the sale of olive oil to 5 percent in 2023 from the previous 10 percent, according to the Associated Press.
Spanish Chancellor of Finance Montero: Olive oil occupies a very important place in the daily lives of Spaniards. Over the past few years, the development of the olive oil market has faced difficulties, mainly due to drought.
Spain is one of the leading countries in the world that produces and exports olive oil. However, the supply of olives and olive oil has plummeted due to rising prices of agricultural inputs and a prolonged drought. The average price of olive oil in Spain has increased by about 130 percent today compared to two years ago. In supermarkets, the average price of a 5-liter barrel of olive oil is more than 50 euros (about 390 yuan).
In order to save money, more and more Spaniards are changing their consumption habits and switching to other types of cooking oil, which are cheaper. In 2023, sales of Spanish extra virgin olive oil decreased by about a quarter compared to the previous year, the data showed.
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Editor: Wang Yifan