Spain eliminates sales tax on olive oil to help consumers cope with skyrocketing prices

MADRID (AP) — Spain will quickly eradicate the gross sales tax on olive oil to assist shoppers deal with skyrocketing costs, the federal government mentioned Tuesday.

Spain is the world’s main producer and exporter of olive oil, however its value for home shoppers has risen dramatically on account of international inflationary pressures and a chronic 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 response to Spain’s agriculture ministry. A five-liter bottle of olive oil can value over 50 euros ($53) at a Spanish grocery store.

Spaniards use olive oil to cook dinner and to garnish sandwiches, salads, greens and different dishes. Final 12 months Spanish households consumed on common 6 liters per particular person, in comparison with 0.4 liters for worldwide shoppers, in response to the agriculture ministry. However the rise in costs has made some change 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 bundle.

No gross sales tax might be utilized to olive oil from July by way of September, when will probably be taxed at 2% till the tip of the 12 months. From then on, will probably be taxed at 4% and be thought-about a primary meals stuff.

Spanish Treasury Minister María Jesús Montero mentioned the choice displays “the significance of olive oil within the Mediterranean food plan and a wholesome way of life.”