AGI – Starting from July the Spanish Government will eliminate VAT on olive oil to increase consumption. The decision was taken following the increase in the price of oil recorded in recent years, which occurred due to the drastic reduction in harvests and drought. Il Sole 24ore reports this, underlining that the Spanish Government – supplier of almost 50% of the world’s olive oil (according to estimates by the International Olive Council, which is based in Madrid) – will resort to the same regime provided for essential products such as bread, fruit and vegetables “which benefit from a super-reduced structural rate of 4%; but in times of high inflation, like the current one, the rate can be reduced to zero”.
The measure comes following previous reductions in VAT on oil, of which Spain – together with Greece – is the world’s leading consumer (with almost 14 liters per inhabitant per year). “This is wonderful news for all Spaniards,” commented government spokeswoman Pilar Alegria in an interview with the Antena 3 television channel.
“In addition to lifting the wallets of Spaniards – he explained – this measure will allow us to support the olive sector and continue to stimulate the consumption of such an important product for our country”. In recent times, specifies Il Sole 24ore, “the price has in fact increased dramatically: last month olive oil was 63% more expensive than in May 2023 and three times more expensive than in January 2021”.
