Spain faces higher tax on basic foodstuffs

The European Commission wants to raise the IVA on food to 10 per cent from 4 per cent.

There are concerns in Spain after news from Brussels of a plan to raise the IVA on food. The rise would affect basic foodstuffs such as bread, milk, eggs and fruit and even books.

For the moment Mariano Rajoy is not making any comments or decisions. The President of the Spanish Confederation of Bread Producers (CEOPAN), Lorenzo Alonso said tht it would be absurd to raise the tax on bread. Consumption of bread in Spain has fallen from 134 kilos a year in the 60’s and 70’s to an average 34 kilos a year placing Spain at the bottom of the list for bread consumption in Europe.