Inflation: The Portuguese government decides to extend the application of zero value-added tax on a group of basic food commodities to help families

Inflation: The Portuguese government decides to extend the application of zero value-added tax on a group of basic food commodities to help families

The Portuguese government has decided to extend the introduction of zero-rate VAT on a range of basic food goods to help families deal with inflation. Government spokeswoman, Marina Vieira da Silva, announced during a press conference at the conclusion of the Cabinet meeting that the zero-rate value-added tax, which was implemented in April, “will be extended until December 31.”

This measure, which “costs 140 million euros” for the period from October to December, she said, will be submitted to Parliament, where the Socialists have an absolute majority. The zero-rated VAT covers a range of 46 products including vegetables, fruits, meat, fish and even dairy products.

The implementation of this measure in April led to “lower prices” and eased “financial pressure on household budgets,” the government confirmed in a press release.

In Portugal, inflation rebounded in August, mainly due to higher fuel prices, after nine consecutive months of slowdown. Consumer prices rose last month by 3.7% on an annual basis, compared to 3.1% in July, while they rose over a month by 0.3%, according to a preliminary estimate from the National Institute of Statistics.

Inflation in Portugal reached its highest level in 30 years in October 2022, at 10.1%. The rate of increase in prices reached 7.8% during the whole of last year, and the increase this year is supposed to be limited to 4% according to the government, or 5.8% according to the Bank of Portugal.



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About the Author: Germano Álvares

"Desbravador de cerveja apaixonado. Álcool alcoólico incurável. Geek de bacon. Viciado em web em geral."

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