Fish products represent 12 pc of the Spanish food expenses. (Photo: T.Ezcurra)
‘VAT rise will have negative consequences for the sector,’ entrepreneurs state
Friday, July 13, 2012, 23:20 (GMT + 9)
The Spanish Fisheries Confederation (Cepesca) warns that the Government's decision to raise VAT on fish from 8 per cent to 10 per cent will cause a negative impact on the Spanish fishing sector.
The entrepreneurship organization expected the increase may have two double consequences.
On the one hand, they say that if the increase is transferred until the marketing chain and affects the final price, the contraction of the demand and the consumption of these products will worsen.
In addition, it is argued that it may cause a further reduction in the price at the origin of the fishery products, which may cause ship owners and fishermen to be really affected as they are the weakest link in the commercial chain. At the organization, it is said that this could occur if intermediaries decide to change the first sale price as a consequence of the rise.
Cepesca estimates that to this situation it should be necessary to add a rise in exploitation costs as a consequence of the increase of three points in the general VAT, from 18 per cent to 21 per cent.
In this regard, the secretary general of the Confederation, Javier Garat, stressed that for some time the fishing industry has been making great efforts to perform a sustainable activity.
Furthermore, he recalled that a few months ago the entire fishing industry of Spain asked the executive to consider the inclusion of fishing and aquaculture products in the list of basic food products, which up-to-date has taxed a 4 per cent VAT.
Cepesca emphasizes the weight of fish products in the family shopping basket, which are around 12 per cent of the total food expenses in Spanish households and the recommendations of minimum intake of these foods to ensure a healthy diet.
According to the World Health Organization (WHO), the European Food Safety Agency and the Spanish Agency for Food Safety and Nutrition (Aesan) per week each person should consume between two and four servings of fish resources.
By Analia Murias