VAT Cut on Food Would Benefit Producers, Minister Says
The Portuguese government is changing its approach to taxes. They are raising taxes on some goods, but food producers are paying the most. The Socialist Party wants to change these tax plans.
The Portuguese government, through Finance Minister Joaquim Miranda Sarmento, announced a rise in Value Added Tax (IVA) on certain goods. The government believes food producers and distributors will absorb most of this increase. This is different from the initial plan to use the IVA rise to cover rising fuel costs. The Socialist Party (PS) has responded with a plan to reverse this change. Their proposals include removing VAT from food and lowering VAT on gas. The PS is trying to show they have a different way to help people with rising costs.
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Highlights
IVA Increase Impacts Producers
The Finance Minister says the higher IVA on food is taken by producers and distributors.
PS Wants Zero Food VAT
The Socialist Party wants no VAT on food items.
Gas VAT Reduction Proposed
The PS also wants to lower VAT on gas prices.
PS Seeks Political Alternative
The PS is trying to be a different choice than the current government.
No Fuel Price Tax Increase
The government says the IVA change isn't about fuel prices.