PR enacts VAT exemption on food baskets and decree on postal service fees

Zero VAT should be in effect from 18 April to 31 October

The President of the Republic promulgated this Tuesday, May 11, the diploma that exempts from VAT a basket of 44 food products and the decree that implements the essential elements of the fee associated with the provision of postal services.

The Government's proposal to exempt a range of food products from VAT was approved last Thursday in Parliament with the favorable votes of the PS, Chega and Iniciativa Liberal, and should be in force between 18 April and 31 October.

After publication of the decree-law in the Diário da República, retail and food distribution have 15 days 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 and yogurts and fruits such as apples, pears, oranges, bananas and melon, among others.

The final text of the proposal approved in a final global vote incorporated some changes to the proposal that the Government sent to Parliament, since, during the specific discussion, proposals from BE and PAN were approved that added to the list vegetable drinks and one from PSD on dietary products intended for enteral nutrition.

Previously, a PSD proposal had also been approved adding fermented milk to the dairy products category.

Also promulgated today by the President of the Republic was the decree that implements the essential elements of the fee associated with the provision of postal services, amending Law no. .

The final text of the Government's bill to implement the essential elements of the fee associated with the provision of postal services was approved on 17 March by the parliamentary committee on the Economy, Public Works, Planning and Housing, after the Minister of Infrastructure João Galamba had urged on 10 February in Parliament that this proposal be approved "as soon as possible".

The law is essentially intended to amend the postal law in order to include, in the respective article 44 on fees, the rules of objective incidence on the way of calculating the regulation fee that are currently translated in annex 9 of an ordinance, without material alteration of its content, according to what the minister explained at the time.

In this way, the criteria for attributing and distributing the costs of regulating the postal sector are defined by law and not by ordinance, and greater legal certainty is given to the collection of this sectoral regulation revenue, bearing in mind that this proposal does not changes the material content contained in the ordinance, namely the formula for calculating the regulation fee, according to the Government.

In addition to CTT, which has the concession of the universal postal service, providers of postal services operate in the Portuguese market, contributing to the regulation fees, which endow the National Communications Authority (Anacom) with effective means to supervise and regulate the postal market .

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