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Lusa - Business News - Portugal: Government to remove VAT from basic food items to stem cost of living

Lisbon, March 24,2023(Lusa) – Portugal's government is to entirely remove value-added tax from essential food items, its minister of finance, Fernando Medina, announced on Friday, as part of efforts to mitigate the rising cost of living.
The government is trying to reach an agreement with the food production and distribution sectors, with a view to creating stability and confidence and, in his words, "ending the fear of not knowing if one day you will reach a shelf [and see] a higher price than you found the day before."
The measure was announced at a joint news conference in Lisbon with Medina and the cabinet office minister, Mariana Vieira da Silva, and minister of labour, social security and solidarity, Ana Mendes Godinho, to present the new support package to mitigate the rising cost of living.
On Thursday, in a debate in parliament, the prime minister had announced that his Socialist government would work with companies in the food chain to ensure a reduction in the price of foodstuffs, including possible cuts to VAT.
LT/ARO // ARO.
Lusa
Agency : LUSA Date : 2023-03-25 12:18:00
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