SPAIN'S government has agreed to axe value-added tax on healthcare products manufactured nationally and used in hospitals, public institutions or non-profit associations, and to reduce it to the 4% minimum on online newspapers, magazines, and e-books.
Value-added tax, or IVA, which went up to 21% on 'general' or 'luxury' products and services in September 2012, also made a giant leap elsewhere: The arts, including books, and even school textbooks, went from the 4% minimum to 21%, and some of the mid-range products and services which were hitherto on 8% IVA rose, not to the increased middle-rate level of 10%, but also to 21%.
It even rose to 21% on veterinary products and medications, which animal activists and pet owners have been campaigning against ever since, considering it is the animals themselves who suffer as their owners will be less likely to seek medical attention for them if they need it.
The left-wing coalition government has been gradually reversing some of these in response to public pressure – printed books of all types, and the press, went down to 4% IVA several months back.
Now, this bottom-rate value-added tax has been applied to the online press and e-books, to ensure those workers who have been laid off temporarily and traders and the self-employed forced to cease operations can still afford to read the news sources of their choice – and entertain and educate themselves and their children during lockdown by buying books online.
Printed books are still being delivered from the FNAC, Amazon and Casa del Libro, among others, albeit shipping times cannot always be guaranteed – although much of the public is reluctant to place orders to avoid putting delivery and packaging workers at risk.
And physical book shops are generally closed.
Stationers' and newsagents' are allowed to open, although again, many smaller ones have opted to close down to keep owners and staff safe from contagion.
Cutting IVA out altogether – to zero – on Spanish-manufactured health products means charities, nursing homes, hospitals, and other entities caring for and supplying the elderly, sick, disabled, and those affected with Covid-19 will find their funds stretch much further and will help them avoid running out of stocks of necessary materials.
The European Union has also agreed to slash IVA on healthcare products exported between member States, and reduce customs duties and other trade barriers on these goods when imported from third countries.
According to economy minister Nadia Calviño – who was director-general for budgets in the European Commission until summer 2018, when she joined Spanish president Pedro Sánchez's government – removing IVA altogether from healthcare materials will save buyers over €1 billion.
She has not given a figure for the cost of cutting IVA on e-books to 4%, however.
The above photograph, taken by the local council in the town of Cabra (Córdoba province), shows staff at its Infanta Margarita Hospital receiving personal protection equipment (PPE) kits.
