The measure that exempts a basket of 46 foods considered essential from VAT comes into force today, April 18, with 15 days for food retail to reflect this exemption in retail prices.
The list of food products that will be exempt from VAT – following a tripartite pact signed between the Government and the food production and distribution sectors – includes fresh, refrigerated and frozen vegetables, meat and fish, as well as rice and pastas, cheeses, milk and yoghurts and fruits such as apples, pears, oranges, bananas and melons, three types of legumes, or even, among others, plant-based drinks and yoghurts.
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 combat the effects of food on household income, will be in effect until the end of October, with the Government estimating that it will make a contribution of 0,2% to reducing the inflation rate in 2023.
Although food retailers have up to 15 days to reflect the reduction from 6% to 0% in the VAT rate on that basket of 46 products in the consumer sale price, there are signs that have already started to announce that they will apply the measure from today, the day it comes into force, namely the Aldi supermarket chain.
In a statement sent to newsrooms this Monday, Aldi announced that «the final PVP [Sale Price to the Public] without VAT will be visible through special price tags, with the indication – “item VAT 0%» –, so that customers can easily identify these products on the shelves, as well as the final price to be paid, dispensing with additional calculations and thus simplifying their shopping experience.
“After payment, the customer can confirm the VAT applied to each product on the respective purchase receipt”, adds the chain of German origin, which says it intends to implement the measure “in a clear and transparent way”.
Questioned about the measure, at the end of Monday's extraordinary Council of Ministers, Prime Minister António Costa said he hoped that 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 made its decision [by exempting products from VAT]”, said António Costa, noting that he is certain that the partners who signed the said pact “will make their decision”.
Comments