The Balearic vice-president, Juan Pedro Yllanes, has told parliament that the government has reported supermarkets in Mallorca and the Balearics for having increased prices of basic foods.
The competition regulator, the National Markets and Competition Commission (CNMC), has been sent information regarding prices in light of the Spanish government's reduction in the rate of IVA (VAT) on basic food items from four per cent to zero per cent. Yllanes said that the government has been monitoring prices and has detected non-compliance. "Not only have they (supermarkets) not reduced prices, they have increased them."
Urgent measures, the minister insisted, need to be adopted.
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Profiteering is still illegal. I compared 2 supermarkets in our area with the same goods bought in november last year and most items had increased, yet the vat amount had fallen in line with the new regs. IE €58 bill last year had a bigger vat constituent than the same bill this year for the same articles. The vat saved went to the supermarket only.
This is a byproduct of government getting mixed in with free trade. It goes rotten fast. Let capitalism do it's thing.