Generalitat Announces Extended VAT Cuts and Free Transit Support to Shield Families From Inflation

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Generalitat President Ximo Puig announced that the Consell would extend regional rate cuts to help citizens weather inflation. He spoke during the Christmas toast to the media at the Casa de las Brujas in Alicante, underscoring support for the latest package of measures approved by the central government.

Puig stated that the extension would take effect at Consell’s plenary session next Friday, aligning with the steps taken by the National Executive. He emphasized that all policies from both the Generalitat and the Spanish Government aim to ensure that no one loses rights in this crisis. Therefore, the rate cuts will be extended to shield families, especially those most affected by the rising prices.

The objective for the Consell remains clear: to do everything possible to curb inflation and to lower prices for households. He noted that Generalitat rates had already fallen by 10 percent and that this downward trend would continue.

Here are the basic foods without VAT

Puig also expressed strong support for the central government package addressing price increases, which includes a VAT reduction on essential foods and free public transport. On the latter, the Consell leader described it as a fundamental measure and pledged that the Generalitat would do its part to expand access to affordable public transport. He reminded that free entry for under 31s remains in effect at least until July 31. This policy is designed to assist people and families with tighter budgets during a time when inflation remains elevated and poses a challenge to the economy’s normal development.

confiscation

Puig rejected criticisms from the PP by arguing that lowering VAT on food is not a new or opportunistic idea. The head of the Generalitat described the opposition’s proposal as a form of financial confiscation that has failed in other countries, arguing that it would not address the root causes of price pressures.

Supermarkets guarantee automatic VAT reduction

Supermarkets have committed to applying the VAT reduction on certain foods approved by the central government automatically from January 1, maintaining the lower prices across the board. This assurance was given by Pedro Reig, manager of Asucova, the Valencian employers’ association that includes major chains such as Mercadona, Consum, Lidl, and Masymas, among others. Reig characterized the measure as generally positive, while noting it could have been more ambitious. Juana Vazquez

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