Mallorca supermarkets did not reduce prices despite cut in VAT
The survey was a few weeks ago; price cuts may be more rigorous now
The Balearic government's consumer affairs directorate undertook a survey of food prices before and after the Spanish government introduced the cut in VAT (IVA) on fresh food and basic necessities. At one supermarket, which had been charging 2.99 euros for a three-kilo bag of potatoes, the price went up 41% to 4.22 euros. This chain increased prices for three out of 60 products studied by the directorate, while two others put up prices of ten and seventeen products respectively.
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