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Spain will raise the value-added tax on basic food items to 2% from the current 0% after Sept. 30, Budget Minister Maria Jesus Montero told a news conference on Tuesday.
Lowering the VAT on food staples to 0% from a previous 4% was a measure introduced in December 2022 to head off a cost-of-living crisis exacerbated by the impact of the war in Ukraine on energy prices.
The government last week added olive oil to the list of essential food items together with bread, milk, fruits and vegetables, among others. (Reporting by David Latona; Editing by Inti Landauro)