The Spanish government has announced the abolition of VAT on olive oil, a decision that will be made official by the Council of Ministers of the executive led by Pedro Sanchez on 25 June and which will come into force starting from July, as a response to the The dramatic increase in olive oil prices caused by the significant reduction in harvests due to drought. The measure is part of the regime envisaged for essential goods such as bread, fruit and vegetables, which already enjoy a super-reduced rate of 4%. However, in a period of high inflation like the current one, the rate can be lowered to 0%. “This is wonderful news for all Spaniards,” said Pilar Alegria, government spokeswoman, during an interview with Antena 3: “In addition to easing the economic burden of Spanish families, this initiative will help support the olive sector and promote the consumption of a fundamental product for our country”. In Italy the VAT applied remains at 4% and recently the Minister of Agriculture, Francesco Lollobrigida, declared last March: “Because one is convinced that paying 30 euros for a bottle of wine at the table, which lasts an hour, Is this normal, and when you have to pay 30 euros for a liter of oil do you see it as a burglary? – the words of the Minister reported by ‘La Repubblica’ – I consider this an absurd fact, which is not respectful of the work behind it”.
