Finance Minister Fernando Medina announced this Friday a reduction in VAT to 0% on the basic food basket, a 1% increase for the civil service, €30 support for vulnerable families and even an increase in the food subsidy. .
The announcement was made jointly with Minister of Administration Mariana Vieira da Silva and Minister of Solidarity and Social Security Anna Mendez Godinho. The aim of the new government measures is to mitigate the rise in the cost of living for the Portuguese.
0% VAT on a basket of basic products
The finance minister announced that the government is currently working on an agreement with the food production and distribution sector to jointly provide a response to Portuguese families, which means lowering the price of a food basket. Fernando Medina emphasized the intention to reduce the basic food basket to “0% VAT”.
Fernando Medina explained that he expressed concern about the unilateral cuts, as the results may not affect families, as happened in Spain. “The measure does not work unilaterally, but if there is an agreement, the measure will work,” he stressed.
The minister explained that the government is committed to reducing VAT, which will be reduced from 6% to 0% for most products, but the manufacturing sector has also committed itself to reducing and stabilizing prices, which also has a direct impact on distribution.
The Minister indicates that the measure will be applied only if there is agreement between all parties. “Only in this way can we get a result that will really support Portuguese families by transferring the VAT reduction to prices and ensuring the stabilization of prices for a number of essential goods,” he said.
Increasing the food subsidy
The finance minister also announced that the government intends to provide income support for civil servants by increasing the food subsidy to six euros.
The Minister of the Presidency explained that an employee in the first position of an Operations Assistant would thus receive an additional 25.22 euros per month net, of which 17.6 were food subsidies and 7.62 were remuneration. An employee at the beginning of his career as a senior technician will receive an additional 30.80 euros net, the same 17.6 euros in food subsidy and 13.20 euros in remuneration.
The Minister of Finance explained that the food subsidy for civil servants will increase to six euros, but the tax exemption in the private sector will also increase to the same amount. “This affects employees in the civil service as well as in the private sector, whose exemption was limited to 5.2 euros and is now exempted to six euros,” he explained.
1% salary increase in civil service
Ana Méndez Godinho explained that the €30 emergency aid for the most vulnerable families will reach 1.7 million families and receive €360 annually. Support will be paid quarterly, first in April, then in June, August and November.
Author: Philip Novais This Leonor Joao
Source: CM Jornal
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