The government will extend the basket with zero VAT until the end of the year, said on Thursday Public.
The VAT-exempt goods basket measure of 46 food items went into effect on April 18 and was originally intended to run until October 31. The measure is reflected in price cuts, so the Government is still analyzing the possibility of including a zero VAT basket in the State Budget for 2024.
The Ministry of Economy and the Sea classified the balance sheet of the first three months of the measure as “very positive”, also noting that the zero VAT basket “was one of the factors contributing to the declining inflation trend in Portugal”.
The zero VAT measure was adopted in Portugal due to the worsening cost of living caused by rising inflation.
Author: morning Post
Source: CM Jornal
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