Spain scraps VAT on basic food to help with rising cost of living
Spain will scrap the value-added tax on basic food items for six months as part of a series of new measures to help people to cope with the rising cost of living.
Prime Minister Pedro Sánchez announced that the VAT would be reduced from 4 per cent to 0 per cent on basic food items, such as bread, cheese and vegetables, while it will be reduced from 10 per cent to 5 per cent on oil and pasta.
The government also approved a one-off aid of €200 for families with incomes of €27,000 or less to compensate for the increase in food prices.
The new anti-crisis aid package is worth €10 billion, bringing the government's expenditures on aid measures to €45 billion.
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