VAT abolished on dozens of food products in Portugal

20-Apr-2023 - Germany

Portugal has temporarily abolished value-added tax on 46 basic foodstuffs in a bid to combat inflation. The measure, decided by the leftist government, took effect Tuesday and is initially scheduled to last until Oct. 31. The suspension of VAT on food applies to products such as bread, pasta, rice, cow's milk, eggs, yogurt, cheese, oil, butter, meat and fish, and is to be extended if necessary. The initiative is part of an agreement signed with producers and retailers in late March that also includes financial support for farmers and livestock producers. The package of measures will cost the state approximately 600 million euros.

Prime Minister António Costa visited two supermarkets of larger chains in Lisbon to check whether the tax savings had been passed on to customers. The Socialist drew a positive first conclusion, but stressed, "We must continue to monitor developments and take all necessary and possible measures to protect families' incomes." Conservative opposition leader Luís Montenegro criticized the measures and said that income tax should instead be reduced.

In March, consumer prices in Portugal rose by 7.4 percent compared to the same month last year. This meant that inflation was similar to that in Germany. However, many people in Portugal have less room for maneuver when it comes to spending due to significantly lower salaries. Value-added tax on most foodstuffs is six percent in the southwestern European country./er/DP/jha (dpa)

Note: This article has been translated using a computer system without human intervention. LUMITOS offers these automatic translations to present a wider range of current news. Since this article has been translated with automatic translation, it is possible that it contains errors in vocabulary, syntax or grammar. The original article in German can be found here.

https://www.yumda.com/en/news/1180209/vat-abolished-on-dozens-of-food-products-in-portugal.html