Finance Minister Fernando Medina today justified a temporary extension until January 4 of the zero VAT measure in response to “operational difficulties” reported by distribution companies related to high activity during the holiday season.
“This extension was agreed for the first days of January in response to the operational difficulties presented by the supermarket chains, the difficulties in having enough workers to carry out this transformation, and therefore they requested that there be more days, and these days will be provided,” Fernando Medina said.
The official spoke to Lusa after a video conference of EU finance ministers, at which a political agreement on reform of fiscal rules was approved.
At stake is the extension of a Portuguese measure that has allowed consumers to avoid paying VAT on almost 50 products since April, in response to the effects of inflation and will only last until the end of the year.
In 2024, the government has already said that this measure will not apply (except for the four days now granted), choosing to focus the budget efforts it implies on strengthening social benefits paid to more vulnerable families.
The exemption now granted follows a bill submitted by the PS which called for “price changes to be made under appropriate conditions, without imposing an undue increase in work or jeopardizing the normal functioning of supermarkets or the opening hours of their stores.” “workers”, in accordance with what the Portuguese Association of Distribution Companies defends.”
Stressing that with the abolition of zero VAT, “supermarkets will have to change prices on a set of almost 50 products,” the Socialist panel then asked for the measure to be extended until January 4, as the extension of the measure coincides “with a period of very intense activity in the food retail sector.”
“Not only does the financial year end on December 31, but supermarkets close earlier than usual due to the New Year holidays. This is followed by a holiday on January 1 when stores are closed, thus leaving January 2 as the appropriate date to make changes in prices,” the PS further argued.
This bill was subsequently approved by parliament, and the diploma was already published by the president of the republic.
Author: Lusa
Source: CM Jornal
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