The zero VAT basket was generally approved this Friday, with favorable votes from the PS, Liberal Initiative and Chega. PSD, PCP, BE, PAN and Livre were the abstaining parties.
The government bill exempts various food products from VAT, such as vegetables, meat and fish – fresh, chilled or frozen -, olive oil, vegetable oils and butter.
Earlier this week, António Costa also announced the signing of a “pact for the stabilization and reduction of food prices” with the Portuguese Association of Distribution Companies (APED) and the Confederation of Farmers of Portugal (CAP).
In the pact, the distribution commits to lowering the price of the 44 VAT-exempt food products included in the annex to the document, without including the tax reduction in the commercial margin.
APED also guarantees to strengthen commercial campaigns, “for a minimum period of six months”, at sales prices exempt from VAT. In this context, the aim is to promote these sales and “contribute to the stabilization” of prices within legal limits.
The signed pact also provides for the establishment of a monitoring committee that “oversees the implementation of the commitments of the agreement” and commits the two sides to cooperate with each other on information sharing.
Source: DN
