The opposition criticizes the effectiveness of IVA Zero, while the government demands mobilization

The opposition said this Wednesday that the VAT exemption measure for 44 foodstuffs was ineffective and belated, criticizing the change in government position, which dismissed the criticism and called for the mobilization of the measure.

In a debate that lasted more than two hours, Deputy Secretary of State to Prime Minister António Mendonça Mendez defended the measure, stressing that it was just another one and should be considered in conjunction with all those already taken to support household income.

“[Esta medida] it’s not too late, as some criticize, because it’s not zero moment. This is really a zero VAT proposal,” he said, emphasizing that it “cannot be considered in isolation.”

Thus, Mendonça Mendez said that this is an additional measure among all income assistance measures, “and also responded to remarks about the risk of ineffectiveness of the stabilization and price reduction pact that the government signed on Monday with distribution and food. manufacturing industries.

The measure, he said, “has the explicit guarantee” of an agreement that ranges from production to distribution to reflect VAT exemption on the price of products that make up the essentials basket, and which was built by pooling the healthy food basket. determined by the Ministry of Health and the foods most consumed by the Portuguese.

“We’ll be here for a year to follow” the implementation of the measure, he said, also stressing the government’s commitment to mobilizing parliament to approve the measure, which will be voted on Friday.

The PSD, in the voice of MP Afonso Oliveira, questioned whether “the government’s beliefs can be trusted in defending its measures”, as the prime minister and finance minister initially opposed the measure they are now representing.

“The measures are late and largely insufficient, (…) and will have very little effect. This is a measure with paternalistic contours, when it is decided which goods are included in the basket with VAT at a zero rate, ”the deputy criticized.

Chega leader Andre Ventura accused the government and PS of “lack of shame” for now proposing a measure they rejected months ago and expected that if it had the same effect as in Spain, consumers would not feel ” no difference”.

“When the Portuguese talk to the government, they want to tell us that prices will come down.” What does the government say? Gentlemen’s agreement with distribution,” he joked.

João Cotrim Figueiredo of the Liberal Initiative said that “lowering the VAT on only some goods makes absolutely no sense,” warning that it “distorts prices” and “leads to shortages and losses.”

“This is a list that embodies the previously named, well, paternalistic will of the state, as if the state knew what people should spend their money on, and as if the state was a kind of arbiter of people’s lifestyle,” he said.

In turn, BE coordinator Katarina Martins believes that the government’s measure “is everything that can go wrong”, and warned that in this case it would be “an incentive for supermarkets paid by taxpayers for 410 million euros.”

“If all goes well, the base basket, which currently costs 226 euros, will drop in price by eight euros. The basket will still cost 26 euros more (…) than a year ago,” he criticized.

PCP MP Duarte Alves defended that “lowering the VAT without price controls means transferring public resources into large-scale distribution.”

“Therefore, PCP will amend this bill in the sense that this VAT reduction is accompanied by price control and price reduction measures,” he said.

Livre’s sole deputy, Ruy Tavares, felt that the government’s measure was “done and discussed” and more beneficial for distributors than manufacturers, and committed to making proposals for changing the specialty.

PAN’s sole MP, Inés de Souza Real, expressed her regret that the basket of essential goods does not include people who follow a vegetarian diet or are lactose intolerant.

In Mendonça’s response, Mendes ruled out that the basket did not include vegans or vegetarians, noting that “there are 28 suitable for vegan food in the basket of 44 items” and 33 for vegetarian food.

According to him, this is a basket “balanced for all age groups and not true that it does not fit the diet of vegans and vegetarians.”

For her part, PS MP Jamila Madeira ensured that the VAT exemption is in line with the “commitment of all sectors so that the impact is on the people” and added that the government continues to negotiate the distribution and will present in the “coming days” that “will be a solution and a key control” price reduction.