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The VAT reductions on basic foods and energy subtract 2,157 million from the collection until October

Taxes on plastic, large fortunes, banking and energy add 3,934 million to the public coffers in the same period.

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The VAT reductions on basic foods and energy subtract 2,157 million from the collection until October

Taxes on plastic, large fortunes, banking and energy add 3,934 million to the public coffers in the same period

MADRID, 3 Dic. (EUROPA PRESS) -

The VAT reductions on basic foods and energy approved by the Executive to face the economic consequences of the war in Ukraine and the rise in prices have meant a reduction in the collection of 2,157 million euros between January and October of this year. year, according to the latest collection report recently published by the Tax Agency.

Specifically, it involves the elimination of the 4% VAT that applies to all basic foodstuffs (bread, flour, milk, cheese, eggs, etc.), the reduction from 10% to 5% of oil and pasta and cuts in the VAT rate to 5% on electricity and natural gas, wood and pellets.

Specifically, the revenue impact for the reduction in food VAT amounts to 1,423 million euros until October, while in energy matters, the VAT reductions on electricity and natural gas, wood and pellets, the reduction in revenue in the first ten months of the year is 734 million euros.

But the impact of these tax cuts will be greater than expected a few months ago, since the extension of the VAT reduction on basic foods, pasta and oils until June 2024 recently announced by the acting President of the Government, Pedro Sánchez, will mean a total loss of more than 2.5 billion euros for public coffers since the measure was implemented on January 1, 2023.

This VAT reduction on some basic elements of the shopping basket expired in December of this year, but the president announced in his inauguration speech that the measure would be extended until June 2024, six more months, which will have an additional cost of about 800 million euros.

However, the decreases in income were slightly offset this year by the increases in collection resulting from the Special Tax on Non-Reusable Plastic Containers, the Temporary Energy Tax, the Temporary Tax on credit institutions and financial credit establishments and the Temporary Solidarity Tax of Great Fortunes, which has allowed a joint collection of 3,934 million until October.