The prime minister announced this Wednesday that his government will work with agents in the food chain to ensure food prices are lowered, allowing for VAT cuts.
During the parliamentary debate on general policy, António Costa emphasized that the government and food chain participants have a “common goal” to reduce and “control inflation on food products”, acknowledging that their cost is “clearly higher than the average inflation at the national level and even higher than in other European countries.”
“We are going to work with the sector to influence prices in several dimensions: the measurement of state aid to production – cost reduction – and, secondly, the balance between tax cuts – that is, VAT – and ensuring that this tax cut translates into an effective reduction and price stabilization,” the prime minister said in response to the PKP.
During a debate in parliament, António Costa refers to the fact that the government is studying measures to combat inflation, including lowering VAT on food products.
The prime minister says that they will try to find “a balance between reducing taxation, that is, VAT, and ensuring that this reduction will lead to effective price reductions.”
“In terms of housing policy, we didn’t start from the roof, we started from the foundation,” António Costa said when asked about the new housing policy. “We have over 200 local housing strategies to be implemented with municipalities. There are 4,000 properties that could lead to 7,925 new homes,” he added.