• Inflation fully impacts healthy food and condemns the vulnerable to junk diet

Food

is today in Spain

14.1% more expensive than

a

year ago.

The rise in raw materials, the packaging itself and the energy (necessary to preserve them, transport them and make those that are not fresh) has made the products that make up the shopping basket considerably more expensive and it is expected that they will

rise even more

when in force in the country the

tax on single-use plastics,

very present in the supermarket.

Products such as butter, pasta, sauces, legumes, meat, yoghurt, some vegetables, cheese, coffee, olive oil, pizzas and prepared dishes, salt or rice reach homes from the supermarket

packaged in plastic,

which is automatically discarded and to which no other use is given,

a plastic for which it will be necessary to pay taxes as of January 1, 2023

as long as it has not been recycled.

Specifically,

0.45 euros per kilogram of non-recycled plastic

will be paid -in line with what is approved in other European countries such as Italy also for 2023, and somewhat higher than the British, of 0.2 pounds sterling per kilo-.

"

It is a novel figure

that inaugurates a category of taxes aimed at promoting the circular economy in the field of plastic", explains

EY

, which recalls that "non-reusable containers that contain plastic, semi-finished plastic products destined for the obtaining the containers (preforms, thermoplastic sheets), and the plastic products that allow the containers to be closed, marketed or presented".

It is not entirely clear, however, which specific products will be subject to taxation and which will not, since the rule says that containers will be exempt "as long as they form an integral part of a product and are necessary to contain, support or preserve said product throughout its life", that is, provided that

the product cannot be marketed without said packaging or the material can be replaced,

as could be the case with

coffee capsules.

"This is an indeterminate concept whose

practical interpretation will generate controversy

," warn

Garrigues

.

In this office they consider that the measure will decisively affect the food sector, although this will not be the only one subject to higher tax costs.

"Given the current dependence on plastic packaging, it

will have a major impact, especially in the food sector

(...) It will affect all operators that manufacture, purchase or import non-reusable plastic packaging, semi-finished plastic products and closures" , point.

They also warn that although the tax

is levied on manufacturers

and aims to encourage the use of recycled plastic or other materials, "

the truth is that most likely, the economic burden of this new tax will be borne by consumers,

since, although it is only planned the legal repercussion of the tax in the case of the first sale or delivery made after the manufacture of the product in Spanish territory, the reality is that

nothing prevents its economic repercussion on consumers

as one more cost

of the good produced".

This means that if

butter

has already risen in price by 31.8%;

pasta is

30.3

% more expensive;

sauces have

become

26.5% more expensive;

eggs rise

22.4

%;

chicken

meat

, 17.6%;

yogurts ,

17.3

%;

legumes ,

14.8

%;

cheese

,

14.6%;

salt, 11.1% and rice, 10.7%, according to the latest data from the INE at the end of August, it is possible to expect greater increases in the future, both due to the impact of the tax and the expected evolution of the cost of raw materials.

The Funcas

panel of analysts

expects the price of

fresh food to rise 10.9%

on average for the year - with increases of 14.1% in September;

14.8% in October;

13.1% in November and 11% in December-, while an

average increase of 10%

is forecast for

processed foods

(12.7% year-on-year in September and October, respectively; 12.8% in November and 12.3% in in December).

They admit that it will affect the consumer

In the last three months (June prices compared to current prices) in some areas it can be seen how

plastic bags of lamb's lettuce and arugula, for example, have gone from 1.09 to 1.29 euros

(+18.3% ), a plastic package of pasta spirals that used to cost 0.80 now costs 0.88 euros (+10%), or private label ketchup has gone from 0.79 to 0.82 euros (+3.8 %).

The increases also affect the entire part of

drugstore and perfumery

that also make up the shopping basket and are mainly packaged in plastic:

the conditioner has gone from 3.55 to 4.29 euros (+20.8%)

;

micellar water from 4.95 to 6.09 (+23%) and hand cream from 1.35 to 1.49 (+10.4%).

The Association of Manufacturers and Distributors (

AECOC

) regrets that since January 2021

the price of the containers and packaging necessary for food and beverages has risen by 20%.

Specifically, those of paper and cardboard, 25%;

those of plastic, 22%, and those of glass, 18%, but they defend that not all cost increases are transferred to the consumer.

"There is no direct transfer of the increase in the cost of materials to the final price of food. In fact,

production costs have risen by up to 70% in some foods,

a percentage much higher than the increase in the CPI for food" , point to EL MUNDO from the employer's association.

The Spanish Federation of Food and Drink Industries (

FIAB

) calculates that the

single-use plastic tax

will have "a direct impact on companies in the sector of around

690 million euros

" and

asks the Government to delay its entry into force :

"In order not to reduce the competitiveness of companies and harm employment, we have asked the Government, together with other organizations in the packaging value chain, to delay at least one year, until January 2024, the entry into force of the Tax".

"We are in a moment of great instability, with unaffordable energy costs and rising inflation, so it

is very important that the Executive does not adopt any regulatory or fiscal measure that reduces the competitiveness of companies and consumers.

In the case of the Tax on Plastic, in addition to strictly economic reasons, the implementation of a tax of these characteristics generates many practical doubts and companies need a sufficient margin of time to be able to resolve them", they point out to this medium.

These organizations, together with others from the entire food chain, such as the agrarian organizations ASAJA, COAG, UPA and Cooperativas Agro-alimentarias, as well as other business associations in the sector, consider that "this is not the time to apply

a new tax

that will only have a

negative impact on the competitiveness of companies and consumers",

admit

.

Conforms to The Trust Project criteria

Know more

  • Europe

  • Italy

  • INE

  • Taxes

  • Inflation