Spanish government lowers VAT of face masks from 21% to 4%
Cabinet says it will be 'vigilant' so that measure turns into cheaper prices and not more earnings for companies
The Spanish government will lower the VAT (or IVA, in Spanish and Catalan) of face masks from 21% to 4%.
The finance minister, María Jesús Montero, announced on Wednesday morning in Congress that the upcoming cabinet meeting will pass the measure next Tuesday.
She also said that authorities will be "vigilant" so that the reductions turn into cheaper prices for users and not more earnings for companies.
Montero explained that they had not put forward the measure before because "EU regulations forbid reduced taxes for this product" – yet, she added that the European Commission informed by letter on Tuesday that "a formal infringement procedure will not be launched" if Spain does not comply with this regulation.
The Spanish executive member also said that the maximum price for surgical masks will be reduced, something that will be discussed in a meeting between ministries on prices of medicines this Thursday.
The current maximum price for surgical masks in Spain is €0.96 including taxes, as established in the official gazette BOE on April 22, 2020.