Eight months after its entry into force, the temporary exemption from value added tax (VAT) on a range of 46 food products, commonly known as “zero VAT”, continues to fulfill the aim of relieving the burden on consumers’ pockets, by essential basket of 16 products for Christmas dinner, with an effective cost of 51.87 euros, a saving of 2.51 euros, which, according to calculations by Dinheiro Vivo, corresponds to 4.8% of the total price.
This is a basic basket selected and checked by Deco Proteste, which takes into account in its accounting only one unit of each product or one kilo, in the case of products sold by weight. The basket therefore initially consists of six items that do not fall under the measure. They are white sugar (1.77 euros), cooking chocolate (1.90 euros), cake flour (1.87 euros), white wine (2.56 euros) and red wine (5.13 euros). This set comes with an invoice of 14.71 euros – which does not result in a discount.
Of the sixteen, ten remain who are entitled to tax exemption. This group includes cooking oil (1.88 euros), eggs (1.53 euros), Carolino rice (2.06 euros), semi-skimmed milk (90 cents), extra virgin olive oil (10.41 euros), the traditional carcass (19 cents). ), cod (12.94 euros), red potatoes (1.30 euros), turkey leg (4.36 euros) and cabbage (1.59 euros). On December 13, consumers paid a total of €37.16 for this bill, but without ‘Zero VAT’ the amount would have been €38.67.
It should be noted that all these products, with the exception of cooking oil, which is taxed at 23%, are subject to a VAT rate of 6% under normal circumstances – the lowest, as they are considered basic necessities. In the case of oil, the state budget for 2024 provides for the transition from the level to the medium level (13%). To understand the impact in detail, the measure provided a benefit of 43 cents on oil, nine cents on eggs, 12 cents on Carolina rice, five cents on milk, 62 cents on olive oil, one cent on bread, 77 cents on cod. seven cents for potatoes, 26 cents for turkey and nine cents for cabbage.
With practical effect since April 18, the VAT exemption on products from the essential healthy basket, defined by the Directorate General of Health, has emerged as an exceptional and temporary measure in response to the extraordinary increase in food prices. end of 2023.
Olive oil increases by 77% in one year
In one year, the total cost of the Christmas essentials basket has increased by 12.7%, meaning it has gone from €46 in December 2022 to €51.87 in December 2023. That’s another €5 .87 euros. According to consumer protection data, this increase mainly occurred in extra virgin olive oil, which out of sixteen was the item that increased in price the most: a 75 centilitre bottle currently costs 10.41 euros, while in the same month it cost 5 .89 euros, an increase of 77%, or 4.52 euros.
Despite the increase in prices for most of the essential goods that make up the basket – this is the case for Carolino rice (two cents), sugar (€ 0.18), chocolate for cooking (€ 0.18), flour for cakes ( €0.26), red wine (€0.52), pineapple (three cents), cod (€0.30), red potatoes (€0.13), cabbage (€0.17) -, there were also drops, including cooking oil, which was reduced by one euro, turkey legs (€ 0.14), white wine (€ 0.13), semi-skimmed milk (seven cents), eggs (six cents) and traditional carcass (one cent).
Dinheiro Vivo journalist
Source: DN
