In their next meeting on Tuesday, the Council of Ministers will approve the reduction of IVA on olive oil to 0% as of July 1, according to sources from the Ministry of Finance.
The Executive has already reduced olive oil from 10% to 5% in 2023.
In addition, the Treasury has decided that, permanently, olive oil will become part of the group of essential products such as bread, eggs, vegetables, and fruits.
In this way, olive oil will structurally form part of the goods and services that apply a super-reduced IVA, of 4% under normal conditions, instead of being placed in the group of goods that apply the reduced IVA, of 10% in normal conditions.
According to the Treasury sources consulted, this measure aims to protect and encourage the consumption of olive oil, the price of which has recently increased as a result of the drought, among other reasons.
In fact, according to data from the National Institute of Statistics (INE) from the CPI, olive oil was 68.1% more expensive in April than a year before, and has accumulated a rise of 204.8% since January 2021, which means that its cost has tripled in the last three years.
