President Ximo Puig announced that the Generalitat’s general assembly will extend regional rate cuts to shield households amid ongoing inflation. He spoke during the Christmas reception for the media at the Casa de las Brujas in Alicante this week, reaffirming his support for the latest package of measures approved by the central government.
Puig noted that the extension will take effect at Consell plenary next Friday, aligning with the measures rolled out by the National Executive. He stated,
“All policies implemented by both the Generalitat and the Spanish Government are coordinated so that no one loses their rights in this crisis. Therefore we will extend the rate cut to protect families, especially those hit hardest.”
The Consell has set a clear objective: to do everything within its power to curb inflation. He emphasized the importance of lowering prices and recalled that Generalitat rates had already been reduced by 10 percent, with that downward trend expected to continue.
Here are the basic foods without VAT
Puig expressed robust backing for the central government package aimed at easing the cost of living, including the VAT reduction on essential foods and the provision of free public transport. On the latter, the Consell leader described it as a fundamental line of action and affirmed that the Generalitat will contribute to extending free transit for eligible users. He reminded that free entry for people under 31 remains in effect at least until July 31, as part of a broader effort to support households with limited means during inflationary pressures that hinder steady economic progress.
confiscation
Puig rejected criticism from the PP, explaining that reducing VAT on food has been a widely supported proposal that he believes the PSOE has embraced with mixed results. According to the head of the Generalitat, the main opposition group was calling for a form of financial confiscation that has not succeeded in other countries and would not serve the region well in the current crisis.
Supermarkets confirm automatic VAT reduction
Retail chains have assured that the VAT reduction on selected foods approved by the central government will be applied automatically starting January 1, maintaining the lower prices across all participating products. This commitment was reiterated by Pedro Reig, head of the Valencian employers’ association, which includes major chains such as Mercadona, Consum, Lidl and Masymas. Reig described the measure as broadly positive, while acknowledging it could have been more expansive.
Overall, the leadership stresses a coordinated approach between regional and national authorities to cushion households from price shocks while maintaining the integrity of social support policies. The dialogue emphasizes the shared goal of protecting family budgets and sustaining economic resilience through targeted, visible relief measures. The discussion continues as inflation remains a central concern for families, businesses, and policymakers alike. [citation]