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The Socialist Party calls on Assembly eliminating overall VAT rate of 21% on flowers and ornamental plants (26/09/2012)

Congressman Manuel Soler said the strong increase in VAT from the Government of Spain, which is passed from the reduced 8% to 21%, will be a huge blow for growers

The Socialist regional deputy, Manuel Soler regretted that the PP is submissive to Rajoy guidelines and has voted against the interests of the producers of flower and ornamental plants Murcia.

Soler has defended this morning in the Assembly a motion claiming the regional government to mediate with the government of the nation so that the VAT rate that applies to the cut flower and ornamental plant is the reduced rate of 10 %.

The sharp rise by the Government of Spain's VAT rate, from 8% reduced the general rate of 21%, will be a huge blow for producers of cut flowers and ornamental plants in the region.

"So it will be very difficult for these farmers to move the 13-point increase in VAT to the final price in the sale of the product."

Soler said that ornamental horticulture in Spain represents 4.3% of plant production end, with a cultivated area of ​​around 6,800 hectares, of which 75% correspond to ornamental plant and a 25% cut flower.

The value of domestic production at source exceeds 900 million and generates about 50,000 direct jobs.

In the Region of Murcia are between 240 and 270 million units of cut flower and ornamental plant 5.5 million, which represents 15% of national production, about 35% of regional production is grouped into four Cooperatives with handling and sales centers in the municipalities of San Javier, Cehegín, Lorca-Alhama and PuertoLumbreras.

Between 2005 - 2010 the extension of cultivation of cut flowers in Spain has suffered a decline of 38%, due to the lack of support from the CAP and competition from imports from third countries to the European Union markets.

The sector of the flower and ornamental plant has had little support from the European Economic Community, being outside time payments of the CAP, and sacrificed for EU trade policy, favoring it imports flowers and plants from third countries.

Flower cultivation is mainly distributed in small family farms and is of great importance, not only economically but as good as job as both cut flowers and ornamental plants, require labor in tillage, handling, sale and distribution.

Competition from third countries

In addition to competition from third countries, as of September 1 (date of entry into force of the increase), Spanish producers are at a disadvantage with productions from countries as producers and consumers of flowers and ornamental plants, as are Italy with a VAT rate of 10%, Germany and France with 7% 6% Netherlands and Belgium, and Switzerland, which is 2.5%.

Soler considers it necessary for the Government of Spain and then implement rectify the reduced VAT rate in the sector of ornamental plants and cut flowers.

Source: PSOE Totana. Foto: PSRM-PSOE

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