An increase in VAT rate to be applied on fish and shellfish will affect the industry and consumers, several organisations warn. (Photo: FIS)

Fishing industry requires 'super-reduced' seafood VAT

SPAIN
Tuesday, August 28, 2012, 01:30 (GMT + 9)

The Government's decision to increase the VAT rate on fish from 8 per cent to 10 per cent as of 1 September keeps the fishing industry on tenterhooks, since the sector believes that this measure will cause harm and the reduction in the consumption of seafood.

The Spanish Fisheries Confederation (Cepesca) will again ask the Executive to amend the rate applicable on fish and that VAT rate becomes 'super-reduced,' reaching only 4 per cent, reported the agency Europa Press.

Otherwise, the fisheries entrepreneurship warns the VAT increase "will have very negative consequences" and will cause a reduction in seafood consumption.

In addition, owners and fishermen emphasized that fish is a staple food and that it is "strictly necessary for proper human nutrition."

The president of the Galician Federation of Fishermen’s Associations, Benito González, argues that there will be "a distribution" of the load and that the VAT increase will be experienced by the market professionals and consumers when purchasing fish.

And the deputy manager of the Cooperative of Shipowners of the Port of Vigo (ARVI), José Antonio Suárez Llanos, insists that the VAT "should be super-reduced" as well as that on the basic foods (milk, cheese, eggs, vegetables, fruit and bread), La Opinion reported.

"We are on the edge, and with the rise of diesel, it would be a severe blow to the industry," said Suárez Llanos.

From Cepesca it has been added that this measure "will result in either a reduction of the consumption due to the increase of the final price or is reflected in the price at first sale of fishery products and, therefore, prices will go down even more."

"A critical time has come, with a contracted market, prices at origin that are really low and soaring production costs," Cepesca added.

The National Association of Wholesalers of Fish from Mercas (Anmape) also considers that the VAT increase will cause a "significant decline" in the sales of the fisheries sector.

According to Suárez Llanos, so far "there has been no answer" from the Ministry of Finance in relation to the proposed super-reduced VAT.

Related article:

- ‘VAT rise will have negative consequences for the sector,’ entrepreneurs state

By Analia Murias
editorial@fis.com
www.fis.com

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