Spain to Eliminate VAT on Olive Oil to Counter Drought-Driven Price Surge

• Spanish government plans to cut VAT on olive oil to zero from July
• Wholesale prices of olive oil more than tripled due to severe drought in Andalusia region
• Olive oil prices soared last year due to two-year drought in Andalusia
• Prices have eased slightly but still remain high
• Goal of the measure is to protect and encourage consumption of olive oil
• One-liter bottles of olive oil were selling for €14.5 in some supermarkets
• Government had already cut VAT on olive oil to 5% last year
• Abundant rainfalls in Spain expected to improve olive harvest next season
• Olive oil to be categorized as a basic food staple with reduced VAT rate of 4% when market conditions return to normal

Source: esmmagazine.com

Note that this post was (partially) written with the help of AI. It is always useful to review the original source material, and where needed to obtain (local) advice from a specialist.

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