Since January 1, 2023, the Government has abolished the Value Added Tax (VAT) on fresh or basic food . The measure is mainly applied to products that already had the rate reduced to 4%, in addition to oils and pasta, to try to alleviate the situation of families, especially those with low incomes, in the context of economic inflation. widespread in the countries of the European Union.
Specifically, the reduction is applied to products that already had the reduced rate of 4%, that is, to foods considered essential, which will go from 4% to 0% VAT . Among them are common bread, bread flour, milk produced by any animal species (natural, certified, pasteurized, concentrated, skimmed, sterilized, UHT, evaporated and powdered), cheeses, eggs and fruits, vegetables , legumes, tubers and cereals that have the status of natural products in accordance with the Food Code and the provisions issued for its development. In the case of olive oil and seeds and pasta, the reduction is from 10% to 5%. The tax reductions, they explain from La Moncloa, will remain in force until June 30, 2023.
“The drop in VAT has an impact on fresh products, flour and legumes. And we think any help that can be done is phenomenal. However, it does not apply to cereals and vegetable drinks, which are the categories most penetrated by organic products in Spain”, explains David Caré , CEO of Biogran . And he adds: “The measure has not yet entered the lifestyle , which for someone who consumes bio is very segmented.”
“Cereals are included, but grains, breakfast ones are not. Everything processed or extruded is left out. Any measure is good to encourage consumption, but if we take the step of going to categories that almost everyone consumes or through which they enter organic, much better”, says Maria Herranz , Director of Marketing and Communication at Biogran . .
Although brief, this tax reduction can help many families continue to buy organic basic necessities, despite the general price increase. “The measure seems insufficient to us, but it is appreciated. It can be, to a large extent, a balm for the ecological sector”, explains Ángeles Parra , president of the Vida Sana Association , in a statement . “This measure allows, in turn, to corroborate that, when you want, you can. We need courageous measures like this for a true transformation of the food sector towards agroecology, with its times and its guidelines, quickly and without pause, because we must combat the great crossroads we are facing: global warming and the loss of biodiversity”.
Increasing the consumption of organic products continues to be one of the main challenges of the sector. Spain is still a long way from the 10% organic consumption set as a goal for 2030. With the aim of valuing organic production, sector organizations, including Ecovalia or ASOBIO , are demanding VAT 0 on organic products .
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