Prices for 14 of the 41 products included in the basic food basket have already risen by more than 6% since the zero VAT measure ended on Thursday, according to a balance sheet published on Tuesday by Deco Proteste.
Between the last zero VAT day, January 4, and Monday, the prices that rose the most were liquid yoghurt, vegetable oil and tuna in olive oil, according to analysis by the consumer watchdog.
“From January 4 to 8, the average increase of 41 products was 5.29%, amounting to 7.51 euros and increasing the average cost of the basket from 141.97 euros to 149.48 euros, respectively,” clarifies.
With the abolition of the VAT exemption, products were again subject to VAT at a rate of 6%, with the exception of vegetable oil, which was 13%, up from the previous rate of 23%.
In its first assessment of the removal of zero VAT on a basket of essential goods, Deco Proteste found that “retailers raised prices below 6% on more than 21 items, meaning there may have been an attempt to soften the immediate impact of VAT being reintroduced.” VAT through promotions on exempt products.”
“This practice may have served to minimize the initial impact felt by consumers,” the association’s communications director, Rita Rodriguez, was quoted as saying in the statement. However, the official warns that “it is still possible that, especially on the first day of VAT restoration, there was some delay in updating the announced prices.”
The zero VAT measure, designed to offset the effects of rising inflation, was in effect from April 18, 2023 to January 4, 2024 and covered 41 basic consumer goods, exempting them from the VAT rate.
Author: Lusa
Source: CM Jornal
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