The Government approves the extension of the VAT reduction on food and aid for public transport

The Permanent Council is the body that will assume the validation of the measures due to the electoral advance

MADRID, 27 Jun. (EUROPA PRESS) -

The Government has approved this Tuesday a Royal Decree-law to extend some of the measures to deal with the economic consequences of the war in Ukraine and the rise in prices that expire on June 30, such as VAT reductions on food and aid to public transport.

"Today we have approved a seventh package of measures applicable to the second part of the year to continue responding effectively to the impact of the war in Ukraine," announced the First Vice President and Minister for Economic Affairs and Digital Transformation, Nadia Calviño, at the conference press after the Council of Ministers.

In total, this package of measures mobilizes an additional 3,800 million euros, although the total impact --taking into account the total aid, with tax cuts and bonuses-- is 8,900 million euros in the second part of the year.

"In total, the seven packages approved mobilize more than 47,000 million euros in response to the impact of the war", the first vice president has highlighted.

Thus, the suppression for six months of the 4% VAT that is applied to all basic foods, including bread or milk, has been reduced from 10% to 5% for oil and pasta.

Among the basic foods that see the 4% VAT eliminated, common bread stands out, as well as frozen common bread dough and frozen common bread exclusively for making common bread; bread-making flours; the following types of milk produced by any animal species: natural, certified, pasteurized, concentrated, skimmed, sterilized, UHT, evaporated, and powdered; the cheeses; eggs and fruits, vegetables, legumes, tubers and cereals, which have the status of natural products in accordance with the Food Code.

Among other aids that expire on June 30 and that have been extended this Tuesday is also the reduction in the price of passes and multi-journey tickets for public transport (the Renfe suburban and medium-distance discount had already been extended throughout the year) . The Government will continue to subsidize the public transport of the rest of the administrations with 30% as long as they commit to increasing this discount to 50%.

Diesel aid for professional transporters, farmers and ranchers is also extended, so that until September 30 the bonus will be 10 cents per month, while in the last quarter of the year it will be 5 cents per litre.

As a consequence of the dissolution of the Cortes Generales due to the electoral advance, the Permanent Deputation, the only body that remains standing, will be the one that assumes the power to validate or repeal the measures that the Government has approved this Tuesday by decree law.

(((WILL BE EXTENSION)))