Spain raises taxes on major food items including olive oil and bread – these are all the affected products [Video]

VAT reductions on food prices introduced at the start of 2023 to counter inflation fuelled by the conflicts in Ukraine and Middle East were rolled back on Tuesday.

Cuts were extended a number of times costing the Spanish government €1.7 billion last year, and over €440 million in the first quarter of 2024.

With some food prices falling along with the general rate of inflation, the VAT rates have now been raised.

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As of October 1, a 2% VAT rate is charged on basic foods like bread, milk, fruit, and vegetables that were previously zero-rated.

Other products have seen the 5% rate rise to 7.5%.

Olive oil has a VAT rate that has gone up from 0% to 2% until the end of this year.

From January 1, the previous 10% rate will not be applied but will have a super-reduced figure of 4% as it is now classified as …