The Ministry of Consumer Affairs is monitoring whether or not supermarkets have lowered VAT on oil and is asking the CNMC to research “possible distortions in the market” | EUROtoday

The Ministry of Consumption retains supermarkets below surveillance. If final February it opened an investigation to test in the event that they had been appropriately passing on to costs the discount of VAT on primary foodstuffs authorised by the Government a yr earlier to include the rise in inflation, now it has once more despatched requests to the principle distribution chains that function within the nation to observe if they’ve utilized the brand new tax discount on olive oilwhich since this July helps a 0% VAT.

The General Directorate of Consumption, which hangs from the division that he directs Pablo Bustinduy and has the authority to behave on this hyperlink within the manufacturing chain, has not solely requested data from supermarkets, however has additionally requested the National Commission for Markets and Competition (CNMC)which is the best physique on this space with the capability to sanction non-compliant corporations, which displays “possible market distortions”.

The Ministry has determined to behave following a grievance from the buyer affiliation Facua, which just a few days in the past it forwarded to the General Directorate of Potential Consumers will increase in revenue margins throughout the retail distribution of olive oil and doable value distortions suffered by the ultimate client. And it has executed so by the 2 methods indicated: first, by requesting data from the supermarkets themselves; and second, by sending Facua's grievance to the CNMC.

“This initiative expands the actions underway to ensure that the reduction in VAT is passed on entirely to consumers and will in no way feed the profit margin of retail distributors,” mentioned Minister Bustinduy on Wednesday, who additionally recalled that the powers of the Consumer Affairs Ministry “only affect the last link in the chain, supermarkets,” and due to this fact insisted that to be able to be certain that the measure is being complied with, “a complete investigation of all the links in the olive oil production chain would be necessary.”

Prices, in any case, mirror that the elimination of VAT on olive oil is starting to bear fruit within the first month of utility. The litre of liquid gold within the grocery store has lastly left behind the psychological barrier of 9 euros. However, The bottle remains to be nearly 50% dearer earlier than the Executive authorised the primary tax discount on this product and specialists level out that costs will stay excessive within the coming months.

We must wait to see the outcomes of the investigation opened by the Ministry of Consumption and in addition by the authorities of the CNMC. However, it is not going to be quickly, for the reason that first investigation, launched in February, remains to be below ministerial secrecy. As EL MUNDO revealed, the supermarkets requested for extra time to submit the accounts that show that they’re, the truth is, appropriately passing on the tax low cost to prospects. At this level, the decision has not been made public.

For its half, on the request of the Ministry of Economy, the CNMC revealed a primary report in July 2023 through which it licensed that The distribution chains had been appropriately transferring the lowered VAT to the ultimate costsprimarily based on data collected between January and May of that yr, that’s, in the course of the first 5 months of the measure in power. And, as sources from the Ministry of Economy introduced months in the past, the supervisor is engaged on a brand new, up to date analysis report of the measure. But nothing is understood in regards to the latter both.