This Friday, Parliament approved the government’s proposal to extend zero VAT on a basket of 46 food products until the end of this year, defeating the Chega and PCP projects.
The government’s proposal was generally approved by the PS, Chega, the Liberal Initiative and the Left Bloc, with abstentions from the PSD, PCP and Livre. The initiative has now been sent to committee and is due for a final global vote by October 25.
The Chega project (which aimed to expand products exempt from VAT and maintain this measure in 2024) failed due to the PS voting against, the other parties abstaining, and the initiator voting in favor.
In turn, the project presented by the PKP, which advocates a price control regime for products in the basic food basket to guarantee control of profits in the distribution and logistics sector, received votes in favor of the initiator from BE and Livre and votes against from the PS, PSD, Chegi and IL.
The PAN projects (on extending the temporary exemption from VAT on food products for vegetarian children and extending the period of application of the measure, as well as on products intended for animal feed) were not discussed on Friday and were not voted on at the request of a deputy who was absent abroad. because he is participating in a European political event.
During the debate on extending zero VAT until the end of the year, opposition parties voiced several criticisms, pointing out the measure’s ineffectiveness in reducing prices and warning of the consequences of its already announced end starting in January. have.
The criticism was refuted by State Secretary for Financial Affairs Nuno Santos Félix, who pointed to data from the National Institute of Statistics (INE) on the deduction of food prices since March.
The proposal to extend the temporary exemption from VAT on food baskets until the end of the year was approved by the Council of Ministers on September 7.
The government has already said in 2024 that the measure will not apply, opting to focus the budget efforts it implies on strengthening social benefits paid to more vulnerable families.
Author: Lusa
Source: CM Jornal
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