Supermarkets ask for VAT reduction on food to lower prices


Asedas, the association that groups Mercadona, Dia or Lidl, denounces that its costs have doubled and that electricity is already its main cost item

With the highest inflation rates in the past 30 years (9.8% in March and 8.4% in April, according to INE data), supermarkets are demanding urgent action from the government to curb price increases. Specifically, Asedas, the association that represents brands like Lidl, Mercadona, Dia or Save More, is asking the Executive to reduce VAT on food products in the face of inflation and that consumption does not collapse.

As early as the first quarter of the year, household consumption fell by 3.7%, according to INE data, and the situation could get worse. “Our main concern is the impact this will have on consumers, who continue to be affected by the effects of the pandemic,” they denounced in the document the association sent to the government this week. In the text, they state that the executive should “take on some of the effort” through tax cuts on basic products.

In addition, in tax matters they demand the “immediate” reduction of the regulatory costs they bear, for example in environmental issues such as plastic containers or the installation of electric chargers, measures that can be “deferred” so that they do not affect large expenditures they now have to endure. They also call for a moratorium on the application of tariffs such as water or fluorinated gases.

Asedas, which unites more than 20 supermarket chains with a total of 19,000 stores, says costs have doubled, especially since electricity is already the main monthly expense. For this reason, they are calling for the new government-approved gas cap system to be implemented as soon as possible and to develop the concept of ‘large essential consumer’ to access more flexible and cost-effective contracts with electricity companies.

They regret that although the weight of energy costs for supermarkets is very high, the percentage of the total costs does not allow them to qualify for the electro-intensive sector and take advantage of the discounts. “In the current situation of exponential increases in electricity prices, many of our companies see their sustainability or the viability of their business in the short and medium term really at risk,” they claim in the document.

They also demand that taxes related to polluting emissions be temporarily suspended or limited and that the sector’s capabilities for installing renewable energy installations in their logistics or commercial facilities be “urgently” supported with European funds.

Source: La Verdad


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