Business · Companies · 3 hrs ago
Aecoc urges VAT cuts to protect Spanish consumers’ purchasing power
Ignacio González, president of Aecoc, which represents more than 35,000 consumer goods companies, says protecting consumers’ purchasing power is the sector’s main challenge in Spain.
The sector is growing by 3.5%, but González says population growth and tourism, rather than economic policy, are driving that rise.
Inflation, taxes and housing costs are squeezing household budgets, even as the wider economy appears to be doing well.
Aecoc wants the government to bring back cuts to food VAT and also reduce taxes on energy supplies to help ease the pressure.
Companies expect Christmas spending to be broadly in line with the rest of the year, but further inflation could hold back consumption.
González says the sector has 160,000 vacancies, including jobs in transport, factory maintenance and fresh-food trades.
Aecoc also supports what González calls sensible immigration to help fill those roles.
Aecoc is calling for renewed cuts to value-added tax on food to help protect Spanish consumers’ purchasing power.
Aecoc president Ignacio González said external pressures, including geopolitical tensions and rising costs, are affecting prices.
He said inflation, taxes and housing costs are weighing on household spending power despite growth in overall consumption.
Aecoc also supports using tax revenue to reduce VAT on energy supplies while the pressures continue.
The association represents more than 35,000 companies in Spain’s consumer-goods sector.
- Who
- Aecoc, represented by its president, Ignacio González.
- What
- Aecoc is urging renewed VAT cuts on food and also proposes cuts on energy supplies.
- When
- The call was reported on 20 October 2026. The previous food VAT cuts were in place during 2023 and 2024.
- Where
- Spain.
- Why
- Aecoc says external pressures are contributing to inflation and affecting consumers’ purchasing power.
This story does not have two clearly opposing sides.
Spain applied food VAT cuts to help offset rising prices.
Expansión reported Aecoc’s call to bring back food VAT cuts.
- Association
- Aecoc represents more than 35,000 companies in the consumer-goods sector.
- Consumption growth
- 3.5%
- Food VAT cuts
- Previously applied in 2023 and 2024.
- Tax revenue
- González said tax revenue is 50% higher than in 2019.
- Sector vacancies
- 160,000 vacancies in Spain’s consumer-goods sector.
1 source
What people are saying
The great challenge is to safeguard consumers’ purchasing power
We are going to insist again
The paradox is that the macroeconomy is doing well and the microeconomy is doing badly