Finance Minister Fernando Medina this Friday believed that direct aid to household income is more effective than changing VAT on food, but said he has no dogma on the subject.
Fernando Medina took this position after being asked at a joint press conference with the ministers of Economy and Social Security whether he accepts, like Spain, the abolition of VAT on certain essential foodstuffs.
“If we decide to take support measures, we have to choose the most effective way to do it,” said the finance minister, noting that the government’s position was that direct support to the income of families most affected by the price increase be affected ” are more advantageous than VAT reductions, not least because it cannot be guaranteed that they will not be reflected in consumer sales prices.
However, he said this is “an issue that we will always evaluate” because “we have no dogma on the subject [mexidas no IVA]what matters to us is the effectiveness of the measure”.
Source: DN
