The new food VAT rebate arrived in the United States this Monday, having received government approval the prior week. In Alicante, traders report uneven impacts as the measure rolls out through selected retailers. Grandly visible at opening, the updated price tags reflect the discount. Small organizations claim they will continue honoring old supplier rates until current stock is exhausted, even as they implement the new policy for future purchases.
Central Market shows the effect across most stalls affected by the policy. The discount applies to bread, milk, eggs, fruit, and vegetables, but excludes meat and fish. Many Alicante vendors did not change their price tags, a point noted by buyers and stallholders alike. One long-time buyer recalled paying VAT the previous year and observed how expectations shift as replacements arrive. The market floor, housed in a historic building, remains a hub of careful observation as prices and stock are updated.
Yolanda Segarra, who runs an egg stall, voiced concerns about the timing and real impact of the discount. She pointed to a dozen large eggs that were €2.00 six months ago and are now €2.80. With VAT removal at 4 percent, the savings are only about 11 cents per item, a modest relief that may not compensate for rising costs. The discussion echoed across stalls as traders weighed the immediate benefit against ongoing price pressures.
One photo captures a bread and pastry stall at Alicante Central Market, a familiar scene for locals and visitors alike. The market’s daily rhythm—early morning sign changes, last-minute price checks, and careful inventory—continues as merchants adapt to the new pricing signals. The photo caption credits the moment, highlighting the resilience of the market ecosystem.
Casualties
Some traders anticipate losses as costs shift. A bakery owner explained that despite applying the new policy, prices have not dropped to offset increased costs. The frustration is palpable among shopkeepers who feel the financial squeeze could outpace the relief offered by the VAT cut.
Conversely, Francisco Alemañ, president of the concessionaires for Alicante’s municipal markets, stressed a customer-first stance. Markets have historically prioritized shoppers, and he expressed confidence that the current approach will follow that tradition, ensuring fair access to essential goods.
These are all the measures announced
In the face of confusion, supermarket staff worked to ensure the rollout proceeded smoothly. A well-known chain on Calderón Street reported ongoing updates to price signs as stores synchronized their systems. The goal was to secure accurate pricing from the start, avoiding miscommunications at checkout. Customers watched with cautious optimism as discounts began to appear in real time while market vendors balanced inventory with demand.
Shoppers offered a mix of hope and skepticism. While one buyer welcomed any move to curb inflation, another admitted that the perceived difference was not dramatic at first glance. The market environment remains dynamic as the policy settles into routine practice across stalls.
A vegetable stand caption highlights the everyday scenes of the market, with vendors and customers negotiating value in real time. The footage echoes the broader sentiment: the VAT cut is part of a larger conversation about affordability and access to basic foods.
Only one euro per purchase
The Union of Consumers in the Community called for a broader VAT exemption on basic foods and a reduction to five percent for staples like pasta and oil. Stakeholders argued that the reform should be implemented promptly and apply to all participating merchants, regardless of when items were purchased, to avoid masked price increases. The union also criticized the limited reach of the measure, warning that the overall savings may be smaller than anticipated.
Analysts suggest that the practical impact on household budgets may be modest, with many purchases seeing only a slight reduction. Some merchants anticipate extending discounts to additional items, while others question how far the policy will stretch before it’s absorbed by rising costs elsewhere in the supply chain.
Alicante economists see inflation easing for a while
A Valencia consumer association commented that the measure should be broadened to include meat, fish, personal care, and cleaning products considered essential. They argued the VAT reduction on basic foods would have a smaller effect than households’ overall rising expenditures, such as fuel and transport costs. Their outlook emphasizes the need for a sustained approach to inflation relief that addresses multiple spending categories rather than a narrow scope of goods.