[PIO] Positive impact of the zero VAT rate on essential goods

What price monitoring by the Consumer Protection Service shows

The zero VAT rate measure appears to have a positive impact on seven key product categories, according to a price survey conducted by the Consumer Protection Service of the Ministry of Energy, Trade and Industry. According to this record, a month and a half after the measure was implemented, the prices of products in hypermarkets have been maintained at 86% - exactly the same level as immediately after the implementation of the zero rate.

In order to better inform consumers about the results of the implementation of the zero-rate VAT measure on essentials, which was implemented by the Government on 5 May 2023, the Consumer Protection Service recorded the price of 65 products in nine different hypermarkets and, in particular, in 58 points of sale nationwide. The recording was carried out in two stages: before and after the implementation of the measure, on 3 May 2023 and 22 June 2023 respectively.

According to the price recording, between the dates mentioned above, fluctuations in the sale prices of the products were observed, which are justified by the market data during the period in question. At the same time, individual price variations were found which were the result of discounts or offers during the above period. The largest deviation in the application of the measure was mainly recorded for infant products (feed, milk and nappies). Stakeholders can see the detailed results of the survey carried out by the Service here.

Taking into account the results of the survey, but also the feedback received, the Service considers that the implementation of the measure has a positive impact and a significant benefit for consumers. Finally, it encourages consumers to carry out meaningful market research in order to identify products and prices that meet both their economic possibilities and their requirements.

(AF/SX)
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