Spain to abolish VAT on olive oil from July amid strong price increases

The Spanish government has decided to abolish VAT on olive oil from July 1, amid a marked increase in prices for this product. This was reported by the agency EFE.

According to his information, the measure will be approved at a meeting of the Council of Ministers on June 25. In 2023, the government of the Kingdom has already reduced VAT on olive oil from 10% to 5%. Now this product will be included in the group of essential goods, which already includes bread, eggs, vegetables or fruit.

In May 2024, olive oil in Spain was 63% more expensive than in the same month a year earlier. Since January 2021, this product has risen in price by almost 200%.

At the same time, the kingdom is one of the main producers of olive oil in the world. According to the government, Spain accounts for 70% of production in the EU and 45% of world production.

Tags: taxes, prices, Spain