Portugal withdraws VAT on essential food products

From today, the government of Portugal has implemented the withdrawal of VAT on about 46 daily essential food products. Prime Minister Antonia Costa today visited two of the country's largest supermarket chains Pingo Dos and Bangladeshi importer Continent (Sonai) to check whether VAT-free prices of certain products have been implemented.

The Portuguese government last March announced the withdrawal of VAT on 46 food products as part of various support programs for the country's citizens in the context of current inflation. This zero VAT program will continue until next October.

By visiting supermarkets on the ground, it can be seen that a basket of daily necessities without VAT is saving about 13 euros from the previous price. However, due to the increase in the prices of some products, the current price excluding VAT remains the same as at the time of announcement.

The government hopes that this initiative will play an effective role in addressing the impact of food on household income. At the same time it will help reduce inflation to 0.2% in 2023.

Talking to customers in supermarkets, it is known that they still do not understand the difference. Because the pre-priced price is without VAT as well as there are some discounts on food products in supermarkets. As a result, they have to wait for some more time to calculate how much benefit they are getting.

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