en 
Fernando Medina said that, to implement this VAT measure, the government is trying to reach an agreement with the food production sector and the food distribution sector, in order to stop "the shock of not knowing if one day you reach a shelf with a higher price than you found the day before".
The measure was announced at the press conference of the Minister of the Presidency, Mariana Vieira da Silva, the Minister of Finance, Fernando Medina, and the Minister of Social Security, Ana Mendes Godinho, which is taking place in Lisbon to present the new aid package to mitigate the rising cost of living.
Yesterday, in a debate in parliament, the prime minister announced that his government would work with the agents of the food chain to ensure a reduction in the price of essential goods, and admitted lowering VAT.
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Be interesting to see the list of “essential” goods! This will determine if this is purely a PR stunt or if they are serious about reducing the tax burden on locals. Maybe housing will be next!!
By Stuart Wood from Algarve on 27 Mar 2023, 08:33
As we know, the price of food is controlled by the food processing industry. As I know, my vegatables and the food I produce myself, does not really cost more than 2 years ago as I make everything myself. My question. Why are they pushing the prices up and up? The blamed Covid, now the WAR in the Ukraine and they keep printing more money to bail out the banks collapsing! I say it is all smoke and mirrors and a way to enrich themselves and make the people poorer to eventually starve. People need to wake up and smell the roses!
By NN from Beiras on 27 Mar 2023, 11:25
More smokescreen politics from the government. There's no something for nothing. The taxpayer will ultimately pay for VAT being reduced to zero, either through higher taxes now, or increased government borrowing, which is future taxation. There will be unintended consequences of this too that no doubt the government hasn't bothered to think about: retailers will not cut prices, but use the zero VAT to increase their profit margin. Think of a food product costing €2.12 which includes 6% VAT. That's €2.00 without the VAT. But retailers can maintain the price at €2.12 or somewhere above €2 to make more profit. So ultimately the consumer will pay more tax to finance retailers' increased profit margins! Once again, it's not for the government to intervene to control each and every aspect of our lives. Usually the end result is worse than the initial problem. Let markets be free, and the people be free too.
By Billy Bissett from Porto on 27 Mar 2023, 11:34
Good idea as long as the food chain supplies don't pocket the difference as seen 8n the UK with some fuel suppliers. It wood have been good if the article says what essential items are. Eg bread, milk rice toilet paper, sanitary products etc.
By David Clark from UK on 27 Mar 2023, 15:05