Valladolid (EFE).- The employers of the Spanish supermarkets ASEDAS demanded this Friday a generalized and temporary reduction in VAT on food products to mitigate a price increase linked to international reasons and “out of control” of the distribution, in even time they demanded that it be legally formalized that they are an “essential sector”.

At a press conference convened in Valladolid, after a meeting of the management of this employers’ association, its general secretary, Ignacio García, defended the need for the government to deal with a “reclassification” of VAT rates, so that what they are currently at 4% can be exempt, those at 10% can go to 4% and those at 21% can go down 10%, although they ruled out detailing the products that ‘they propose.

A cashier works in a supermarket in Valladolid.EFE/ R. García

In this regard, the representative of businessmen warned of the impact that the tax that will come into force in January on the use of single-use plastics, of an environmental nature, will have on prices, but this will involve an increase in products, many of which are intended for food.

García acknowledged that these cuts cannot “compromise the collection capacities” of the State, but he pointed out that the rise in prices leads to an “excess collection” which should be “returned” by this reduction in VAT and also with measures that reduce the rest of the factors that influence the formation of prices, among which he mentioned the cost of raw materials, energy and transport.

The sector defends its essential role in the pandemic

The Spanish Association of Distributors, Self-Services and Supermarkets has demanded that these bonuses be channeled through the legal recognition of this sector as “essential”, in reference to the role it has played during the recent covid pandemic.

“That essential was soon lost,” lamented García, who lamented that, right after the worst of the pandemic, when the debate began over which groups should be vaccinated first, administrations failed to include the 250,000 employees in this sector among the population considered essential.

Asked about price formation in this context of soaring prices over the past year, the employers’ representative assured that competition in all links in the food chain limits the occurrence of abuse for the benefit of everyone, although that he pointed out that, in the case of supermarkets, they are the actor that incorporates the least percentage increase in costs, when they try to compensate for it with higher sales.

Faced with the protests of farmers and ranchers due to the scarcity of margins, García drew statistics and assured that the problems of profitability of the farms are linked to the forms of production and the increase in additional costs, which are beyond control . of the own food chain, whose transparency has defended.EFE

Author: Oscar R. Window

Web editor: Maria Rosado

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