VAT on staple foods such as bread and eggs will return to 4%, while the tax rate on products such as pasta and seed oil will rise.
He VAT on basic food such as bread and eggs will return to 4%, while the tax rate for products such as pasta and seed oils will increase from January 1, 2025.
The Council of Ministers gave the green light for one yesterday package of economic measures with important implications for the new year and which will influence the shopping cart.
Among them, the rise of is notable 2.8% in premium pensionswhich will translate into an increase of 40 euros per month or 600 euros per year for retirees. In Euskadi and Navarra, approximately 650,000 people will benefit from this measure. In addition, minimum pensions will increase by 6%, while non-contributory pensions and the minimum living income will be revalued by 9%, strengthening the purchasing power of the most vulnerable groups.
On the other hand, from January 1the reduced VAT that was in force for basic foodstuffs will no longer apply.
This means that the tax on products such as bread, milk, eggs, cheese, fruit and vegetables will return to 4%, after being reduced to 2%. Similarly, VAT on pasta and seed oils, such as sunflower oil, will rise from the current 7.5% to 10%.
The end of these tax cuts will impact the prices of essential products on family tables, just as pensions seek to offset inflation and ease the economic burden of those most affected.
This budget adjustment coincides with other economic measures that will come into effect in 2025, such as the expansion of public transport bonuses and the introduction of a new energy tax.
Source: EITB
I’m Wayne Wickman, a professional journalist and author for Today Times Live. My specialty is covering global news and current events, offering readers a unique perspective on the world’s most pressing issues. I’m passionate about storytelling and helping people stay informed on the goings-on of our planet.
