The VAT exemption for 46 food categories ends this Thursday, and in the eight months from April to December, the price of the basket of products included in it increased by €6.73.
According to price collection carried out by Lusa on the website of the food distribution network, the purchase of 49 food items subject to zero VAT cost €173.99 on December 19, compared to the €166.86 that would have been spent on April 18, which is the day on which this measure to mitigate rising inflation came into force.
The explanation for this difference is the increase in prices for 14 food products, with the largest increase (in the specified time period) for olive oil, where a 0.75 ml bottle in the extra virgin category increased by 4.42 euros to 6.39 euros and in various vegetables and fruits.
Bread (in this case the Rio Mayor variety chosen) also rose from €1.11 in April to €1.19 in December – a price that is one cent higher than the price quoted by the same large supermarket on April 18, with which would be charged if it were zero. VAT was not applied.
The basket of 49 products listed by Lusa, which includes, among others, pasta, various types of meat and fish, vegetables, fruit, rice, dairy products or bread, shows that during this period there were 16 products whose prices fell, and at 19 remained the same.
Some of the biggest drops include, for example, a 500-gram package of spaghetti (which rose from €1.21 to €0.75) or a bottle of vegetable oil (which rose from €2.10 to €1.59). Eggs and butter are also a few cents cheaper in December. The price of chicken, pork or turkey meat has remained virtually unchanged.
Despite the range of products whose price fell or remained significantly higher than those that increased (14), the bill payable by the end consumer increased by almost seven euros.
The price of products included in the 46 types of food included in the VAT-free basket could rise later this week as the measure ends this Thursday 4th.
The products in the 0% VAT basket were selected 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.
The measure was initially expected to remain in effect until the end of October, but the government decided to extend it until January 4.
Author: Lusa
Source: CM Jornal
I’m Tifany Hawkins, a professional journalist with years of experience in news reporting. I currently work for a prominent news website and write articles for 24NewsReporters as an author. My primary focus is on economy-related stories, though I am also experienced in several other areas of journalism.