As a result of the armed conflict in Ukraine, with the consequent increase in price in the global economy, the government adopted a series of measures designed to minimise the impact of the crisis in the pockets of the citizens, among them, the lowering of tax rates of VAT to certain food or basic necessities.

Thus, with effect from 1 January 2023, foods such as white bread, flour, milk, eggs, fruits and vegetables, among others, the use of which was subject to the type IVA superreducido 4%, went to pay a exceptional type of the 0%.

The oil, not understood in principle between the staple food, has increased from 10% to 5%, and subsequently, from the second half of 2024, to 0%.

Pasta and vegetable oils increased from 10% to 5%.

Adding to the shaker the conflict in the middle East, these types have been maintained until the 30th of September.

However, with effect from today, 1 October 2024, begins the reversal of these measures that aligeraban the increase of prices in the “shopping basket”.

Basic food commodities were subject to a VAT rate exceptional 0% up to 2%, and those others who tributaban to 5%, they do so to 7.5%. But not permanently. This climb, some still refer to as “down” in the types by their comparison with those who were of the application prior to January of 2023, it is transient. As transient as that is planned until the 31 of December of this year.

In this way the January 1, 2025, the consumption of staple foods will return to the original type of 4%, and the pasta and seed oils at 10%.

And what's with the olive oil?. We have enjoyed the type of the 0% for 3 months only. Since today happens to 2%, already recognized as a staple food, and from 1 January 2025 the type superreducido of 4%.

Do drop rates? There is No denying that it is precisely the olive oil, is a decline of real, in fact the only, the passing of tax to 10%, the type superreducido 4% permanently.

Now, bearing in mind that olive oil is the product that has been raised in this crisis, with a rise accumulated from 2021 180%, perhaps the reduction in the rate of VAT does not assume the relief desired.

Let us remember also that the olive oil was included in the category of commodity, for being a staple in a healthy diet. However, the rate cuts left out the meat and fish, with a side effect: the habit of the consumers has been modified, leaning towards a higher consumption of processed foods.

Taking into account that the conflicts are not only not ceased, but the tension that affects the world order is increasingly palpable, perhaps the transience of the reduction of the rates could have been more “lax” to the rest of the food.

Another aspect to take into account is that of the fund. is there really a significant decrease in the collection of our tax Administration as a result of the reduction in types?. Sure you all have noticed the increase, at the beginning of 2023, in the food prices. This increase could have been “eaten”, never better said, the reduction in types.

 The withdrawal of the rate cuts, it will have at least two immediate effects: consumers are going to see earnestly at 3 euros on average your shopping basket, and food inflation is going to increase by 1%; and this without taking into account the impact that losprecios not return to values prior to the adoption of the measures.