The Royal Decree-Law 20/2022 , of December 27, on measures to respond to the economic and social consequences of the War in Ukraine and to support the reconstruction of the island of La Palma and other situations of vulnerability, in its article 72 established a reduction from 4 to 0 percent of the tax rate of the Value Added Tax that fell on basic food products, until now subject to the reduced rate, as well as a reduction from 10 to 5 percent to the tax rate applicable to oils and pasta. Furthermore, the rate of the equivalence surcharge corresponding to these transactions was also reduced accordingly.

Both reductions were established on a temporary and extraordinary basis from January 1, 2023 and were subject to the evolution of the interannual rate of underlying inflation.

In accordance with the above, given that the interannual rate of core inflation for the month of March has been 7.5 percent – higher than the reference 5.5 percent –, the tax rates of the 5 and 0 percent and the equivalence surcharge rates of 0.625 and 0 percent until June 30, 2023 .