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The savings in euros that we will obtain with the VAT reduction in the shopping cart

Date: February 7, 2023 Time: 07:28:09

The VAT reduction on basic food items, which will last until June 30, 2023, will provide a slight relief for family economies. It is estimated that supermarkets will have to modify the price of between 3,000 and 5,000 products that they will acquire somewhat cheaper. Bread, bread-making flour, milk, cheese, eggs, fruit, vegetables, legumes, potatoes, tubers, and cereals, which until now had established a super-reduced VAT of 4%, will go to 0%. Meanwhile, the VAT on oils and pastes is reduced from 10% to 5%.

It forms part of the anti-crisis measures, such as the 200-euro shopping cart aid check for vulnerable families, to deal with the escalation of food prices. They became more expensive in November by 15.3%, more than double the general CPI, which was 6.8%. For the moment, other basic foods, such as meat, fish, yogurt, bottled water, coffee and preserves, you keep the reduced VAT of 10%. Making an estimate of the prices of the food that will drop in price, which always vary between brands and stores, we calculate how the VAT exemption will translate into savings for our pockets:

Frying pan

The varieties are almost infinite, but we will take average prices to estimate the savings. For example, a 60 cent bar will cost between 57 and 58 cents. In a whole bar of 1.50 euros, we will save 6 cents. And sliced ​​bread that costs 2.25 euros will cost us 9 cents less in 2023.

bread flour

The kilo of white brand wheat flour is around 0.70 euros, so its price will be reduced by about 3 cents. Flour from a brand like Gallo costs 1.60 euros and now costs 1.52 cents. The strength flour is not exempt from VAT.

milk

The price of milk has skyrocketed by more than 25% in the last year, being one of the foods most consumed by families. The private label liter already reaches a price between 80 and 90 cents, approximately. Without VAT, they will cost between 87 and 97 cents. Some of the first brands of whole milk cost between 1.09 and 1.34, so the savings will be between 5 and 6 cents. Even the liter of milk with calcium Pascual costs 1.90 euros, and its price will be reduced to 1.82

cheese

All types of cheese are exempt from VAT. Their prices are so variable that it is difficult to estimate a saving. For example, in a package of 2 euros, we will save 8 cents. A wedge of 5 euros will cost us 20 cents less. And a cheese of 25 euros will cost 24.

Eggs

Inflation has also increased the price of eggs by more than 23% compared to a year earlier. A dozen private label already costs around 2.50 euros, so in January 2023 they will cost 2.40 euros. The dozen BIO eggs are around 4.50 euros, and with the VAT exemption we will save 18 cents.

fruit

We take average prices of different kilos of fruit to estimate savings. Bananas will go from 1.39 to 1.34 euros. Bananas, from 2.70 to 2.60 euros. Table oranges, which cost 2.40, will cost 2.31 euros. The conference pear, from 1.85 to 1.78 euros. Lemons, from 1.60 to 1.54 euros. And the apples, from 1.50 to 1.44 euros.

Vegetables, vegetables, legumes and tubers

A romaine lettuce will go from 1.10 to 1.05 euros. Green beans, from 5 euros per kilo to 4.80 euros. Vegetables such as onions, carrots or courgettes now cost an average of 1.60, 2.30 and 5.50 euros per kilo respectively. They will cost 1.54, 2.21 and 5.29 euros. In legumes such as chickpeas, lentils and beans, which cost 2.38, 4.50 and 5.50 euros per kilo, we will save 10, 18 and 22 cents respectively. As in a 5kg bag of potatoes, which will go from 5 to 4.80 euros.

cereals

Only the VAT will be lowered for cereals that will have the status of natural products in accordance with the Food Code. This means that it is in the same state that it was obtained from its own crops. For example, rice. If a kilo costs between 1.35 and 2 euros, depending on the brand, it will cost between 1.30 and 1.92 euros. Cereals that do not have the status of natural products will keep the VAT reduced to 10%.

oil

All types of oil will maintain VAT at 5% for six months. Olive oil doubles its price compared to 2019 and has risen by more than one euro throughout 2022, since the invasion of Ukraine. The white label from Carrefour, for example, closes the year at 5.20 euros, so it will cost 4.94 euros. The Carbonell brand is ‘through the clouds’. The liter is worth 8.39 euros, which with a lower tax will cost 7.95 euros. The 5-liter carafe of La Masía reaches a price of 26 euros and we save 1.25 euros. The sunflower will go from 3.50 to 3.33 euros, approximately.

pasta

Macaroni, noodles, spaghetti and other pasta cost about 80 cents for a half-kilo package of white brands. With the VAT reduction they will cost about 76 cents. The half kilo of the first brands costs between 1.50 and 2 euros, so they will cost between 1.43 and 1.90 euros.

Puck Henry
Puck Henry
Puck Henry is an editor for ePrimefeed covering all types of news.
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