He Spanish government approved this Tuesday a new package of anti-crisis measures that includes the elimination of the VAT for him olive oil until October and the reduction of income tax for people with less income.
The First Vice President of the Executive and Minister of Finance, María Jesús Montero, detailed to the press after the Council of Ministers the set of measures adopted to alleviate the effects of the price crisis resulting from the war in Ukraine, while others are being phased out, such as the reduction of the special tax on electricity.
Montero highlighted that the anti-crisis measures adopted since 2020 amount to 120,000 million euros and stated that the tax cuts applied have saved 25,000 million, all while correcting the public deficit.
The vice president explained that the fiscal measures of the package, which affect VAT and personal income tax, will save families 3,000 million euros per year.
One of the novelties is the reduction in VAT on olive oil, which goes from 5% to zero when joining the group of basic foods, which usually pay a VAT of 4%, but currently they have it fully subsidized.
Olive oil, basic in the Spanish diet, will be permanently integrated into this group – which includes milk, bread, eggs and fruit – which, as approved this Tuesday, will continue to pay zero VAT until 30 September and then 2% until the end of the year, when it will recover its usual rate of 4%.
Regarding the income tax (IRPF), the reduction applied to this tax increases, so that people who earn the minimum wage are exempt from paying taxes and there are reductions in this tax up to 22,000 euros per year, so it will benefit to 5.2 million taxpayers, especially low-income workers and pensioners.
Among other measures, the new decree also extends until the end of the year the prohibition on interrupting basic supplies to vulnerable consumers due to non-payment, while the discount on the social electricity bonus is extended until June 30 of next year.
It may interest you
- IIF: The Spanish Government should not see the rescue as a setback
- “Zombie” companies threaten rescued Spanish bank
- Spain orders state-owned Sepi to purchase up to 10% of Telefónica
Source: Gestion
Ricardo is a renowned author and journalist, known for his exceptional writing on top-news stories. He currently works as a writer at the 247 News Agency, where he is known for his ability to deliver breaking news and insightful analysis on the most pressing issues of the day.
