At the beginning of the month, the National Institute of Statistics (INE) reflected that food inflation alone totaled 16.7% in February. Almost one point above January’s 15.4%, and also above the record 15.7% in December, the figure has resulted in the temporary abolition of VAT on basic necessities (such as bread, fruit, legumes or vegetables) and the reduction of VAT on other foodstuffs. Arrived despite discounts. 10% to 5% (such as pasta or oils) effective from 1 January. late Monday afternoon, Portugal chose a solution similar to the Spanish one, although it brought a total of 44 foods to 0% and in a worse context, with food inflation exceeding 20% (especially 20.1%). Of course, in its case, it also incorporated the seven fish species most consumed by the population, such as cod, sardines, tuna, mackerel, sea bream, horse mackerel and canned tuna, as well as some meat and fish products.
The Portuguese socialist Administrator signed an agreement with the production and distribution sectors of his country to apply zero VAT to the basket of 44 food products. So called Agreement to stabilize and lower the prices of two foodstuffswhat does it include Support for manufacturers to face rising costs, reached together with the manufacturers’ Portuguese employers (CAP) and distribution companies (APED). According to Prime Minister António Costa, this will have an impact of 600m euros on the public coffers.
“We have to work together to find the best possible solution for citizens consuming retail products.” “No one knows how long this war will last, and there is a risk that production costs will increase further as it continues.”.
“The government understood and accepted that the producers needed compensation”Underlined Eduardo Oliveira e Sousa, president of the Portuguese Farmers Confederation (CAP).
Gonçalo Lobo Xabier, president of the Portuguese Association of Distribution Companies (APED), said the trade would be “ready to assume its responsibilities”.
among 44 foods There are some of the best known fish in Portuguese gastronomy, such as cod or sardines. Likewise, there are canned tuna, sea bream, salmon and other pelagic species such as horse mackerel and mackerel.
The measure was celebrated on the other side of the border, although it did not cover all species. Spanish industry employers (such as Cepesca, Anfaco or Conxemar) have been asking for VAT reductions for years from 10% to at least 4% for its products. Demand has intensified since the pandemic, and especially in recent months, when Spain’s proposal to lower the tax on certain foods was approved before the end of the year.
The Portuguese basket, according to nutritionists, was created taking into account the criteria of healthy eating and the products most demanded by the population, defended by Spanish employers who understood this, as Spanish employers defended. If this were done in Spain, products as healthy as fish could be on sale.
Even so, the sector will continue to insist and will now use the example of Portugal in its claims. Sources from employers said, “The roadmap remains, but undoubtedly this allows us to demonstrate that our request is possible, justified and reasonable.”
Generalitat Valenciana received a €90 bonus in April
In mid-April, Generalitat Valenciana will launch a voucher for the shopping cart, a prepaid debit card with a balance of 90 euros, which will be activated for four months and used to pay for food in autonomous community organisations. .
As announced by Generalitat President Ximo Puig, this consumer voucher will be intended for residents of this community whose family income does not exceed 21,000 euros and is estimated to reach more than half a million Valencian families. Likewise, the minimum living income will be in line with the Valencian inclusion income and the Government’s aid of 200 euros.
Puig said the measure, to which Generalitat has allocated 48m euros, is an “ethical necessity” given the result of “dialogue and reconciliation” with employers and unions and a “step forward”.