As of today daily life becomes more expensive, not that we really noticed a difference with the zero VAT, and supermarkets rigged all their pricing.
VAT begins to be charged today on a basket of 46 food categories, around eight months after the exemption from this tax was determined to combat the impact of inflation on family budgets.
Zero VAT (Value Added Tax), the result of an agreement between the Government, distribution and farmers, applied to a range of foods, such as onions, tomatoes, apples, bananas, bread, potatoes, rice, peas , chicken, cod, chicken eggs, canned tuna, cow’s milk, plant-based drinks, olive oil and butter.
The Portuguese Association of Distribution Companies (APED) clarified to Lusa that the VAT replacement will happen “immediately”, ensuring that there will be no logistical constraints.
“The measure ended at the end of business hours and VAT will be reset from January 5th. This period allowed us all to be in a position, in a calm and transparent way, to comply with the law again and restore VAT on these products” , said the general director of APED, Gonçalo Lobo Xavier, in statements to Lusa, clarifying that the tax will be restored “immediately”.
According to the price collection carried out by Lusa on the website of a food distribution chain, the purchase of 49 foods subject to zero VAT cost 173.99 euros on December 19th, compared to the 166.86 euros that would have to be spent on April 18, that is, the day this measure came into force.
Explaining this difference is the rise in the price of 14 foods, with the biggest increases being observed (in the period of time indicated) in olive oil, where a 0.75 ml bottle in the ‘extra virgin’ category increased by 4 .42 euros to 6.39 euros and in various vegetables and fruits.
Bread (in this case the ‘Rio Maior’ variety was chosen) also rose from 1.11 euros in April to 1.19 euros in December — a price that exceeds by one cent what the same large supermarket indicated on 18 April that would be charged if zero VAT were not in application.
Deco warned that consumers should pay attention to the price of products, make comparisons and have “good control of accounts” to “avoid overruns”, highlighting the importance of supervision.
“There are a whole series of products and services that consumers must count on for increases and the truth is that income, even if it increases, will only happen at the end of the month. That’s why it’s essential to make a good planning and a price comparison”, pointed out the coordinator of Deco’s financial protection office, Natália Nunes, in statements to Lusa.
The products in the basket with 0% VAT were chosen taking into account the Ministry of Health’s healthy food basket and data from distribution companies on the products most consumed by the Portuguese.
The measure was initially intended to be in force until the end of October, but the Government decided to extend it until January 4th to respond to the “operational difficulties” highlighted by retailers.