"On October 25th, the food basket with 41 products with zero VAT, monitored by DECO Proteste, cost 134.94 euros. This basket had never been so expensive since the tax exemption came into force", says the organisation.
DECO Proteste explains that "on the eve of the implementation of zero VAT on some essential food goods, on April 17, the food basket monitored by DECO Proteste cost 138.77 euros".
"In the first weeks, the tax exemption allowed some savings, with the price of the food basket falling to 127.81 euros on May 17, the date on which the first month of the measure was marked. However, in more recent weeks, the impact of zero percent VAT has been decreasing. Some products are even 50% more expensive than before the tax was removed".
The VAT exemption on the basket of 46 foodstuffs will not be renewed in 2024, with compensation of an equivalent value being planned to reinforce social benefits for the most vulnerable families.
The change in the model was announced by the Minister of Finance, Fernando Medina, when presenting the OE2024 proposal, on October 10th.