Spain to Extend Tax Cuts on Basic Foods Ahead of July Snap Vote

With elections looming next month, the Spanish government of Prime Minister Pedro Sanchez plans to extend tax breaks on staple foods until living costs ease further.

“We will maintain a lower value-added tax on basic food items for as long as we don’t reach adequate price levels,” Economy Minister Nadia Calvino told reporters Monday at the headquarters of Sanchez’s Socialist party in Madrid.

The government unveiled a multi-billion-euro package in December to ease the burden of surging prices by cutting VAT on some foods as well as electricity bills, and subsidizing some public transport. The decision to extend the tax ...