VAT will be kept off basic foods in Spain through the July 23rd election, of course
Spanish Economy Minister Nadia Calvino has announced that Spain will not re-add VAT onto the costs of basic food like bread, cheese, milk, fruit, vegetables and cereals until, as she put it, “price levels are more appropriate”.
This after the removal of VAT on basic foods was implemented on January 1st due to continually rising prices causing hardship for many, but with the policy expected to end at the end of June.
Of course, as most Spaniards will tell you, it was expected the Spanish government of Pedro Sánchez would keep VAT off basic foods until at least the end of July, 2023.
After all, the ruling Socialist Party is now facing a snap election on July 23rd after their implementation of disastrous policy after disastrous policy over the last three years has angered most Spaniards.
In particular, Spaniards are angry about the authoritarian policies the Sánchez’ government implemented during their two-plus-years-long overreaction to Covid-19 that lead to skyrocketing inflation.
Now, with the Socialist Party facing possible defeat on July 23rd, any policy that might help them earn votes will, of course, be implemented.
Or in the case of the removal of VAT on basic foods, not reimplemented until after the election is over.
Inflation in Spain now one of Europe’s lowest
Interestingly, however, inflation in Spain has now seen a massive drop of 5 percent since just the beginning of the year, with the current inflation rate in Spain now at only 3.2 percent.
Compared to other European countries, Spain’s inflation rate is now one of the lowest on the continent, with only Switzerland, Russia, Liechtenstein, Cyprus, Denmark and Greece reporting lower rates.
In other words, VAT on basic food in Spain would likely have been added back at the end of this month.
If Pedro Sánchez and his Socialist Party cronies were not so worried about being kicked out of office next month, that is.