The Government decides this week if it maintains the VAT reduction on some foods

by time news

2023-06-25 20:05:14

He Government decide this week whether to delete the anti-crisis measures that expire on June 30 and that were adopted in the last decree-law of December to cushion the rise in prices caused by the war in Ukraineamong them, the abolition and reduction of VAT to some staple foods.

The decision could be made at the Minister council this Tuesday in a context in which inflation is moderating and the European Central Bank (BCE) is asking the eurozone countries to gradually withdraw some public aid which in the medium term could increase inflationary pressures and toughen the monetary policy response.

The Government has not revealed whether it is going to maintain the elimination of VAT for staple foods (bread, bread flour, milk, cheese, eggs, fruit, vegetables, vegetables, legumes, potatoes, cereals) and the reduction from 10 to 5% for oils and paste.

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The year-on-year inflation stood at 3.2% in Maynine tenths lower than that registered in April and the lowest in almost two yearsdue to lower fuel prices and the lower rise in food and non-alcoholic beverages.

Food inflation has slowed to 12%, but some maintain annual inflation above 20%such as sugar (46.3%), butter (25.2%), olive oil (24.7%), whole milk (24.3%) and potatoes (23.6%).

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