Aecoc urges next government to restore zero VAT on basic foods as spending slows

Congress opens with tax demands

The 41st AECOC Gran Consumo Congress opened in Seville on Wednesday, 21 October 2026. Its president, Ignacio González, asked the government that comes out of the general election on 29 November to cut taxes, starting with a temporary return to zero VAT on basic foods and lower taxes on energy supplies. The event gathered 1,340 executives from 480 companies, and the association groups more than 35,000 manufacturers and distributors. González presented the request as a response to a squeeze on household budgets that is coming from both prices and taxes.

VAT and energy taxes can be cut, so let us do it, because we can see what the tax take is and it can be done.

Inflation and a slowdown in spending

González said food prices have risen 29% since 2021, a rise he described as inflation on top of inflation. General inflation reached 4.9% in September, while food inflation stood at 2.7% that month, below the headline rate. Consumer panels cited by González describe 2026's weakest month to date, and the retail trade index has been negative for three months. The association still forecasts consumption growth of 3.5% for 2026 as a whole.

Companies are absorbing part of their cost increases and cutting margins to keep prices from rising further, and they are running spending reduction plans to do so. González warned that this buffer has limits. The longer the Strait of Hormuz disruption lasts, the harder it will be for companies to hold on.

The longer the Strait of Hormuz problem lasts, the harder it will be for companies to hold on.

Taxes, wages and productivity

González argued that the state has room for a tax cut because tax revenue is about 50% higher than seven years ago, while public spending has grown 6.2% a year. He said there are no budgets in place to use that revenue well. According to González, two in three salaried workers in Spain earn 30,000 euros or less a year, and a salary of 30,000 euros generates 17,000 euros in taxes. He accused the government of not adjusting income tax (IRPF) for inflation, which he called a silent tax rise that has cut the purchasing power of the middle class.

Productivity in Spain is 23% below the eurozone average, González said, and absenteeism costs 36,000 million euros a year, the third-largest item of public spending after pensions and healthcare. He framed the problem as one of management rather than health.

Absenteeism is not a health problem but a management problem.

Migration, France and the election

González called for a 'sensible and orderly' migration policy to fill about 160,000 vacancies in Spain's labour market. He said Spain's social reality is different from France's, where unrest and protests have led Carrefour to cut its forecasts. He hoped the French episode would prove temporary and that Spain would avoid similar events. He also urged the next government to pass budgets, unblock parliament, reach consensus on urgent matters and avoid polarisation and the normalisation of corruption.