THERE is a bit of good news for consumers as major shopping chains in Spain have promised to absorb the impending 3% IVA (VAT) increase.
Supermarket giant Mercadona, which claims 90% of its more than 8,000 lines have kept the same prices from a year ago, is the latest to announce it will not pass on the IVA increase to customers, joining other big names including, Inditex, Eroski, Carrefour, Lidl, Mango, H&M and Corefiel.
The IVA rate is set to jump this weekend from 18% to 21% with the reduced rate rising from 8% to 10%, while the super-reduced rate, which applies to fresh food staples, books or prescription drugs, will remain at 4%.
Mariano Rajoy is not considering further VAT or Personal Income Tax increases in the 2013 Budget and hopes not to have to take such difficult decisions for the Spanish people as those taken during the first months of his term in office.
The President of the Government also calls for greater economic and fiscal integration within the European Union; “no steps backward will be taken; not by the Euro, not by the Single Market and not by the Union”.
The President of the Government, Mariano Rajoy, received the President of the Republic of France, François Hollande, at Moncloa Palace on Thursday. They discussed matters on the international and bilateral agendas, including the situation in Spain and the Eurozone.