The General Directorates of Commerce and Consumer Affairs of the Balearic Govern yesterday began to monitoring the prices of foodstuffs on which the State Executive has decided to abolish or reduce VAT, in order to compare them again with those that will be applied from January 2nd and thus verify that this reduction in taxation really reaches the pockets of citizens, according to the heads of both autonomous departments, Miguel Piñol and Felix Alonso, respectively.

This campaign to monitor prices before and after the elimination or reduction of VAT is applied is being undertaken among large distributors, such as supermarket chains and hypermarkets, through the collaboration between the two aforementioned general directorates. It should be borne in mind that Commerce is responsible for this matter lies, but Consumer Affairs has the largest number of inspectors, hence the decision to work in conjunction.

Miguel Piñol emphasises that so much importance has been given to this issue that his department’s monitoring is currently dedicated to it, leaving aside other initiatives for the moment such as the review of discounts that are starting to be applied as the sales get underway. In this respect, he stresses that VAT control is applied to basic products for families, and that a reduction in their prices is of particular benefit to those in the most vulnerable circumstances.

Monitoring

Prices before and after eliminating VAT

The Govern’s Consumer Affairs and Commerce departments are recording current prices of basic foodstuffs to check that from day 2, VAT removal has been implemented.

For information purposes

Intentions to inform regarding the mandatory application

The Executive intends to inform, not to impose penalties, except in recurring cases, since what is sought is to verify that prices dropped as much as the VAT reduction.

Transparency

Show prices with VAT and the new price after removal

Consumer Affairs proposes that the large distribution companies show the price with VAT and the definitive price once reduced or removed, as an exercise of transparency with consumers.