Wednesday, June 15, 2016

Replacement of VAT will bring benefits – Observer

The economy minister defended Wednesday the replacement of VAT in the restoration will bring a “mixed” benefits to consumers from the price reduction to improve the quality of service.

“The consumers may have, where there is competition, lower prices. In other cases may also have better service, “said Manuel Caldeira Cabral on the sidelines of the presentation of the Association Port Tech Hub.

On the day the Association of Restaurants and Similar Portugal (AHRESP) met with the Ministry of Finance to finalize the technical details of replacement VAT in the sector, Cabral Caldeira pointed out that the result for consumers could be “a mixture of both.”

“what is negotiated and combined with industry associations, and the associations have repeated, is that this will help a lot to create jobs, “said the official, adding that” to have a little more slack, “companies” will be able to re-hire and it improve the quality of service. “

” But they, in other cases, more focused companies compete by price than the service, can also lower prices, “he stressed.

the draft state budget for 2016 included the lowering of the tax Value Added tax (VAT) in the restoration of 23% to 13%, in food and in beverages such as plain water or coffee.

In February, the general director of AHRESP argued that companies that had difficulties in the past four years will not lower prices for consumers, despite the fall in VAT to 13%.

Prime Minister António Costa, said in March that the “main goal” of the Government with low restoration VAT is job creation, but considered it excellent a “reduction of prices” in the establishments.

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