Wed. Sep 28th, 2022

Valladolid (EFE).- Employers at the Spanish supermarket ASEDAS demanded this Friday a reduction in VAT on food products for international reasons and at the same time to mitigate price increases linked to “out of control” distribution. Time to make their claim that they are an “essential sector” legally official.

During a press conference called in Valladolid, after a meeting of the management of this employer’s association, its general secretary, Ignacio García, defended the need for the government to deal with a “reclassification” of VAT tax rates, so that they can be discounted to what they currently are at 4%. Those at 10% may go to 4% and at 21% they may go to 10%, although they declined to elaborate on which products they are offering.

A cashier works in a supermarket in Valladolid. EFE/ R. Garcia

In relation to this, the representative of traders warned that the tax on the use of single-use plastics of an environmental nature, which will come into force in January, will affect the price, but it will indicate an increase. A lot of them for products, food.

García admitted that these reductions “may not compromise the collection capacity” of the state, but he stressed that the price increase is creating an “excess collection” that should be “returned” by this VAT reduction, and is affecting the price structure even with the rest of the reduction measures. Among the factors he cites are the cost of raw materials, energy and transportation.

The sector defends its essential role in the pandemic

The Spanish Association of Distributors, Self-Service and Supermarkets has demanded that these bonuses be channeled through legal recognition of the sector as “necessary”, citing the role it played during the recent Covid pandemic.

“That imperative was soon lost,” lamented García, who lamented that, after the worst of the pandemic, when debate began over groups that should be vaccinated in the first place, administrations did not include its 250,000 employees. The sector is considered essential among the population.

When asked about the structure of prices in this context of rising prices in the last year, the representative of the employers’ association assured that competition in all links of the food chain limits the incidence of abuse of profits by each party, although he highlighted that, in the case of supermarkets, they are the actors that include the lowest percentage of cost increases. does, while trying to compensate for this with higher sales.

Faced with protests from farmers and ranchers due to scarce margins, García drew statistics and assured that the profitability problems of the farms are related to the production forms and the increase in excess costs, which are out of control. Own food chain, whose transparency has been preserved

Author: Oscar R. Window

Web Editing: Maria Rosado

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