oh Former finance minister João Leão thinks prices will “normalize” and fall without the measure of zero VAT on food products throughout the year, highlighting the effect of energy already felt in markets.
“It’s to be expected Even if food prices normalize and decrease throughout the year, [mas] Not just VAT. VAT is not very important. But to the most important effect And it can already be felt in international markets: a strong reduction in energy prices, especially gas”, said Jono Leo, in an interview with Antena 1 and Zornal de Negocios.
João Leão considers that “we are now suffering from an increase in agricultural products, related to the conditions of three or four months ago, the very high price of gas, but in the meantime it is falling. Now it is natural for producers to have more conditions to increase the offer“.
People should not be afraid that prices are always going to deteriorate,’ warns the former finance minister.
Asked if reducing the IRS would have a more relevant impact on families if the VAT on food was reduced, Leão explained that “with changes in the IRS, families in difficulty are not necessarily supported.”
“So, families in distress are not supporting the IRS. Then, if it’s the IRS, these families are independent of the level of spending on food. They can have very high incomes and spend very little food,” he concluded.
The zero VAT agreement signed between the government, distribution (APED) and farmers (CAP) will be in effect for half a year and will apply to 44 products. Prime Minister Antonio Costa explained that the basket was built through a proposal from the Ministry of Health, with the aim of guaranteeing a “healthy diet”.
Under the agreement, the supply is made to reduce the cost of 44 VAT-exempt food products, not including the tax reduction in the commercial range.
Also Read: Natural or Frozen? A complete and comprehensive list of VAT free foods
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