Luís Montenegro, leaving a market in Brandoa, in the municipality of Amadora, on Tuesday said that the expected price changes with the reduction of VAT to 0% on some essential goods “do not exist”.
“I warned that it was not possible to raise people’s expectations. Price changes do not exist. Here, citizens will not have more resources to live a more dignified life,” emphasized the leader of the PSD, saying that the “real world does not accompany” the measures taken by the government.
Instead of lowering VAT, Montenegro is proposing to lower the IRS. “If the IRS is lowered, lower earners and middle class people will have more purchasing power,” he argued, accusing the government of pursuing “wrong” fiscal policies.
The measure exempting a basket of 46 foods deemed essential from VAT came into effect on Tuesday, with food retailers having 15 days to factor this exemption into retail prices.
The list of food products now exempt from VAT – following a tripartite pact signed between the government and the food production and distribution sectors – includes fresh, chilled and frozen vegetables, meat and fish, as well as rice and pasta, cheeses, milk and yoghurts and fruits such as apples, pears, oranges, bananas and melons, three types of legumes, or even plant-based drinks and yogurts, among others.
The products were chosen taking into account the healthy food basket of the Ministry of Health and data from distribution companies on the products most consumed by the Portuguese.
This measure, which aims to counter the effects of food on household income, will be in place until the end of October, with the government estimating that it will contribute 0.2% to reducing inflation in 2023.
While food retailers have up to 15 days to pass the reduction in the VAT rate from 6% to 0% on that basket of 46 products into the consumer sales price, signs are already beginning to announce that they will apply the measure from this Tuesday, the day it comes into effect, namely the Aldi supermarket chain.
In a statement sent to editors on Monday, Aldi announced that “the PVP [Preço de Venda ao Público] the final price without VAT will be visible through special price labels, stating — “item VAT 0%” –, so that customers can easily identify these products on the shelves, as well as the final price to be paid, eliminating additional cost calculations thus simplifying your shopping experience.
“After payment, the customer can confirm the VAT applied to each product on the respective proof of purchase,” adds the chain of German origin, which says it wants to implement the measure “in a clear and transparent way”.
Asked about the measure, the Prime Minister, António Costa, said at the end of Monday’s extraordinary council of ministers that he hoped everyone would do their part, referring to the pact for the stabilization and reduction of food prices signed between the government, the Portuguese Association of Distribution Companies (APED) and the Confederation of Farmers of Portugal (CAP).
“We all have to do our part. The state has already done its job [isentando de IVA os produtos]said António Costa, pointing out that he was sure that the partners who signed the said pact “will do their thing”.
Source: DN
