Portugal temporarily abolishes VAT on food

Prohibition of food in plastic
Food in the market / Photo: EPA-EFE/ANDY RAIN

Portugal is temporarily abolishing value-added tax (VAT) on basic food products to reduce prices.

Portugal's left-wing government plans to abolish VAT on 44 basic food products in the next six months, the prime minister said. Antonio Costa. The VAT on those foods is now six percent.

He added that the measure is part of the agreement signed with producers and traders in order to stabilize prices. Košta emphasized that the agreement foresees planned and financial support for farmers and herders, in the amount of 600 million euros.

The abolition of VAT for bread, pasta, rice, milk, eggs, yogurt, cheese, oil, butter, meat and fish can be extended after the initial six-month period, Kosta pointed out.

The draft law has not yet been adopted by the Parliament.

Annual consumer inflation in Portugal reached 8,2 percent in February, slightly below the 8,5 percent recorded in the eurozone, of which Portugal is a member. But food inflation recently topped 20,1 percent.

Dear reader,

Our access to web content is free, because we believe in equality in information, regardless of whether someone can pay or not. Therefore, in order to continue our work, we ask for the support of our community of readers by financially supporting the Free Press. Become a member of Sloboden Pechat to help the facilities that will enable us to deliver long-term and quality information and TOGETHER let's ensure a free and independent voice that will ALWAYS BE ON THE PEOPLE'S SIDE.


Video of the day