Alberto Núñez Feijóo presented a tax package to ease the burden on households in Spain on 24 September 2026. The leader of the Partido Popular is calling for VAT to be cut to zero immediately VAT on foods classified as essentials, as well as a reduction in the VAT rate on energy from 21 to 10 per cent. He also proposes temporarily doubling tax allowances per child for the period from August to December 2026. According to calculations by people close to Feijóo, this would give a family with two children around 400 euros in additional net income on paper.
Staple foods named by Feijóo include milk, cheese, oil, eggs, fruit, vegetables, meat, fish and tinned food. He justified the initiative by pointing to persistently high Inflation and the noticeably weakened purchasing power of many households. He also called for lower production costs in agriculture, for example through relief on fertilisers and fuel, as well as a reduction in bureaucracy. The proposals are to be introduced as a legislative initiative or through amendments to the Cortes Generales .
The announcement comes amid expected government decisions to curb the cost of living and energy costs. According to the government coalition it was said that fiscal measures must be designed to be sound in budgetary and legal terms. Experts point out that a zero rate of VAT, besides reducing revenue, requires precise administrative definitions, for example of the product categories covered, to avoid market distortions and disputes over implementation.
Several national media outlets reported on the Feijóo proposals on 24 September 2026, including RTVE, Servimedia and Europa Press; audiovisual recordings of the announcement are available. This documents the proposal, but does not yet amount to a specific draft law. Whether, and in what form, the measures will be adopted depends on parliamentary majorities and an assessment of their financial impact. The sequence of events alongside possible government measures also remains unclear and could intensify the political dispute over the scope and priorities of relief measures.
The debate comes amid a situation in which price rises are putting particular pressure on low- and middle-income households. Supporters point to the immediate effect that lower consumption taxes would have on the till receipt. Critics warn that broad tax cuts would be costly and poorly targeted; accompanying checks would be needed to ensure that the savings actually reach consumers.
Editor: Mira Cadena (Article created with AI assistance).