Madrid, Dec 27 (EFE).- The Spanish government put forward a new raft of measures to tackle the cost of living crisis on Tuesday that will see VAT slashed on food products over the next six months.<\/p>\n\n\n\n
Prime minister Pedro S\u00e1nchez discussed the third package of measures to mitigate the economic fallout of the war in Ukraine with reporters after his cabinet approved the new measures.<\/p>\n\n\n\n
“The Government is going to ensure that VAT reductions and aid to farmers are transferred directly and immediately to food prices,” S\u00e1nchez said.<\/p>\n\n\n\n
Basic foods currently on a 4% tax rate would be VAT exempt and others taxed at 10% would be downgraded to a 5% VAT rate, the prime minister continued.<\/p>\n\n\n\n
Staple foods such as bread, bread flour, milk, cheese, eggs, fruits, vegetables, legumes, potatoes and cereals will no longer be taxed.<\/p>\n\n\n\n
Other foods such as oils and pasta have been downgraded from a 10% VAT rate to 5%.<\/p>\n\n\n\n
The government has also announced 300 million euros in direct aid to farmers to offset the increase in the cost of fertilizers.<\/p>\n\n\n\n
S\u00e1nchez said some 4.2 million low-income homes would be handed a 200-euro check.<\/p>\n\n\n\n
“This government is going to continue protecting ordinary people,” S\u00e1nchez concluded. EFE<\/p>\n\n\n\n
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