Zara owner Inditex is to absorb the Spanish government-imposed VAT increase from 18% to 21%, so as not to increase prices. In 2010, when VAT rose from 16% to 18%, Inditex also kept prices stable.

“With this decision, Inditex maintains its policy of price stability as it has already absorbed a previous increase of VAT in Spain by identifying efficiencies in various areas of its business,” the retailer said.

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