The Minister of Finance, Fernando Medina, justified this Wednesday the temporary extension, until January 4, of the zero VAT measure in response to the “operational problems” reported by distribution companies related to the high activity during the holidays.
“This extension was agreed before the first days of January in response to the operational problems that the supermarket chains had faced, the difficulty of having enough employees to carry out this transformation. more days and these days will be granted”said Fernando Medina.
The official spoke to the Lusa agency after a video conference of European Union finance ministers, in which a political agreement on the reform of fiscal rules was approved.
At stake is the extension of the Portuguese measure, which has allowed consumers not to pay VAT on almost fifty products since April. This measure was created in response to the effects of inflation and would only be in effect until the end of the year.
For 2024, the government has already said that the measure will not be applied (with the exception of the four days now granted), having decided to channel the budgetary efforts this entailed to strengthen social benefits to more vulnerable families .
The now allowed exception comes after a bill by the PS, which called for a “price change to be implemented under appropriate circumstances, without implying an excessive increase in work and without disrupting the normal operation of supermarkets or the working hours of their supermarkets endanger”. employees.” employees, in line with what the Portuguese Association of Distribution Companies has defended”.
Stressing that, with the end of zero VAT, “supermarkets will have to adjust the prices of a range of almost 50 products”, the Socialist Bank then asked for an extension until January 4, as the extension of the measure coincides “with a period of very intense activity in the food retail sector”.
“December 31 not only ends the fiscal year, but due to the New Year’s festivities, supermarkets close earlier than normal. This is followed by the January 1 holiday, when stores are closed, leaving January 2 as a viable date to make product price changes. “the PS further argued.
This bill has now been approved by Parliament and the diploma has already been promulgated by the President of the Republic.
Source: DN
