The basket of products with zero VAT, presented this Monday, March 27, by the Government, includes canned tuna and cod, as well as various types of fruits, vegetables, dairy products, meat and eggs, to combat rising food prices.
The list has several essential products, such as bread, potatoes, pasta and rice and various vegetables, including onions, Portuguese cabbage and broccoli.
Among the 44 products presented are chicken, pork and olive oil.
The application of a 0% VAT rate on a basket of essential food products and the reinforcement of production support will cost around 600 million euros.
The value was advanced this Monday, March 27, by the Prime Minister, at the signing ceremony of the pact for the stabilization and reduction of food prices between the Government, the Portuguese Association of Distribution Companies (APED) and the Confederation of Farmers of Portugal (CAP).
«In the set of these measures, between support for production and loss of tax revenue as a result of zero VAT, this program has a total cost of around 600 million euros», said the prime minister, noting that it is an «obviously great effort to a program that has a horizon of six months».
The prime minister also stressed the need to monitor the situation over these six months, noting that the commitment signed today guarantees on the part of food retail that the drop in VAT will be reflected in the sale price to consumers and the importance of strengthening production support where fertilizer, feed and energy costs have increased.
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