The average price of the essential food basket fell 6.26%, following the enactment of zero VAT on 46 products, according to ASAE data released this Wednesday by the Ministry of Economic Affairs.
According to the ASAE report [Autoridade de Segurança Alimentar e Económica]based on a sample of one good per type/category with selection criteria, generally private label items, and an online and physical store collection (1,220 commercial spaces), there was a decrease of 6.26% in the average total price of the selected basket “said in a statement to the Ministry of Economy and Sea.
The data was presented this Wednesday at a meeting of the monitoring committee of the Food Stabilization and Price Reduction Pact, two days after the measure came into effect.
In addition to ASAE, the supervisory committee also includes the Competition Authority, the Tax Office, the Directorate-General for Economic Activities, the Directorate-General for Consumer Affairs, the Planning, Policy and General Administration Office of the Ministry of Agriculture, the Portuguese Association of Distribution Companies (APED) and the Confederation of Peasants of Portugal (CAP).
To contain the impact of inflation on the portfolio of the Portuguese, the government has taken a series of measures, such as the application of a 0% VAT rate to a basket of essential food products.
The list of products with 0% VAT includes canned tuna, cod, bread, potatoes, pasta, rice, onions, broccoli, chicken, pork or olive oil.
The Pact for the Stabilization and Reduction of Food Prices was signed between the government, the Portuguese Association of Distribution Companies (APED) and the Confederation of Farmers of Portugal (CAP).
The average VAT zero came into effect on Tuesday and will last until the end of October.
Lusa has reached out to APED and CAP, but has not received a response to date.
Source: DN
