Supermarkets Under Scrutiny: Anti-Crisis Decree, VAT Reduction and Food Industry’s Plea for Extension.

The Government has been closely monitoring supermarkets to ensure they are not exploiting the VAT reduction on food to increase their profit margins, which is prohibited in the anti-crisis decree. Several supermarket chains have requested an extension of time to submit their accounts and demonstrate that they are passing on the tax discount to customers.

In February, the Ministry of Consumer Affairs initiated an investigation into major retail distributors to ensure they are transferring the VAT reduction to consumers. The investigation is ongoing as some chains have requested an extension of the deadline provided by the Ministry. The Ministry has stated that all required information has been submitted and is currently being reviewed.

The National Commission of Markets and Competition (CNMC) is also monitoring supermarkets to ensure compliance. A report published in July 2023 confirmed that distribution chains were correctly passing on the VAT reduction to consumers. The CNMC is working on an updated evaluation report on the measure.

Meanwhile, the food industry is preparing to ask the Government to extend the VAT reduction on basic products beyond its expiration date in June. They want the reduction to remain in place until the end of the year and are advocating for an expanded list of affected products. This includes essential items like meat and fish. The industry is hoping for political stability to expedite