Speaking at the end of the meeting of the Council of Ministers, which took place this Thursday, the minister of Economy and Planning explained that the measure was adopted as part of a process to increase production and, consequently, consumption, Angop writes.
The official said that the measures approved during the Council of Ministers are aimed at increasing the purchasing power of families, at a time when interruptions in the global logistics chain are causing variations in product prices.
On the reduction of VAT from 14 to seven percent, the responsible explained that this reduction will be incorporated in the rationalization of taxation of AGT.
He also explained that the reduction in the VAT rate covers around 25 products of ample consumption, but will also include derivatives of these products.
Mário Caetano de Sousa also recalled that approximately two months ago the Executive approved a measure related to import duties for several products: "About two months ago we had a measure related to import duties also for a series of products that are more imported and that have a de facto impact on household consumption," he said, quoted by RNA.
"We are also anticipating other measures that can encourage increased production and, consequently, consumption, which is the strategic food reserve," he added.