October 7, 2022

Supermarkets ask for VAT reduction on food due to inflation

Valladolid (EFE).- The employers of the Spanish supermarkets ASEDAS on Friday demanded a general and temporary reduction in VAT on food products to mitigate a price increase linked to international reasons while at the same time “getting out of control” distribution time that they have demanded that they be legally made official that they are an “essential sector”.

At a press conference in Valladolid, after a meeting of the management of this employers’ association, the general secretary, Ignacio García, defended the need for the government to face a “reclassification” of VAT rates, so that what they currently those with 4% can be exempted, those with 10% can go to 4% and those with 21% can reduce 10%, although they have excluded what products they propose.

A cashier works in a supermarket in Valladolid EFE/ R. García

In this connection, the representative of the businessmen warned of the consequences that the tax that will come into effect in January on the use of single-use plastics of an ecological nature will have on prices, but that will increase the products, much of them for food.

García has acknowledged that these reductions cannot jeopardize the state’s collection capacity, but he has emphasized that the price increase creates an “excessive collection” which must be “returned” through this VAT reduction and also with measures that reducing the factors that influence price formation, including he mentioned the cost of raw materials, energy and transportation.

The sector defends its vital role in the pandemic

The Spanish Association of Distributors, Self-Service and Supermarkets has demanded that these bonuses be channeled through the legal recognition of this sector as “essential”, citing the role it played during the recent covid pandemic.

“That essence has quickly been lost,” lamented García, who lamented that, just after the worst of the pandemic, when the debate began on which groups should be vaccinated in the first place, the administrations did not support the 250,000 workers of this sector. considered essential among the population.

Asked about price formation in this context of rising prices over the past year, the representative of the employers’ organization assured that competition in all parts of the food chain limits the occurrence of abuse in the profits of each party, although he emphasized that, in the In the case of supermarkets, they are the actor that charges the least percentage of the cost increase when they try to offset it with higher sales.

Faced with the protests of the farmers and ranchers because of the scarcity of margins, García has compiled statistics and assured that the problems with the profitability of the farms are related to forms of production and to the increase in additional costs, which are outside the control fall of its own food chain, whose transparency has championed.EFE

Author: Oscar R. Window

Web editor: Maria Rosado

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