Friday, December 16, 2016

That prices will increase in 2017? – Diário de Notícias – Lisbon

The Portuguese should count, in the next year, with increases in rents, in prices of light, road tolls, tobacco, and automobiles, while the milk and the bread, for example, are expected to remain at current levels.

Here are some examples of products or services that will increase in 2017 are:

Rent

The value of the rents expected to increase is 0.54% in 2017, which represents the biggest rise since 2014, taking account of the numbers of the inflation of the last 12 months up to August, released by the National Institute of Statistics (INE).

according To figures published by the INE, in the last 12 months up to August, the variation of the price index excluding housing was 0.54%, value that serves as the basis of the coefficient used for the update of annual budgets under the New Regime of Urban Leases (NRAU), which represents more than 54 cents for every 100 euros of income.

The increase of 0.54% of budgets in next year, applicable to both the urban and the rural environment, follows the rise of 0.16 per cent recorded in 2016 and freeze that occurred in 2015 in the wake of negative variation of the price index excluding housing registered this year.

soft Drinks

from February, drinks with sugar will increase up to 30 cents for each bottle of 1.5 liters, according to estimates by the consulting firm Deloitte.

the cause is the enlargement of the Tax on Alcohol and Alcoholic Beverages (IABA), the tax which has hitherto taxed the drinks depending on the alcohol, but that with the State Budget for 2017 (OE2017), will start to tax them depending on the level of sugar.

we contacted the industry associations to understand how it will be accommodated this new taxation on final prices to the consumer, who refused to talk about the subject for reasons of competition.

Contacted by Reuters, Coca-Cola and Pepsi not commented if they will increase prices of soft drinks in the next year, despite the new excise tax to sugary drinks.

Tobacco

According to advanced Business Journal, the price of the pack of tobacco will increase by 10 cents next year to reflect the rise in the Tobacco Tax (IT).

To Lusa, André Marques, director of the National Association of Wholesalers of Tobacco, confirmed the increase, but indicated that it should only happen after you have completed the first quarter of the year, since there is still ‘stock’ to sell.

The tax burden on tobacco is made by way of two components of tax (one on the specific element and another about the value of tobacco) and the OE2017 has defined an increase of the taxation for the specific element at about a penny, said to Lusa the fiscalista Deloitte Afonso Arnaldo.

however, explained the fiscalista, the increase will be higher because the tobacco impact the tax on the pack of tobacco, rounding the price to five or to ten cents, which means that, in the end, the increase in the price depends on the margins that the tobacco understand apply.

on the other hand, the State Budget defines that the tax on electronic cigarettes is reduced by half, to 30 cents per milliliter of liquid containing nicotine.

Car

In the next year, the Single Tax Movement (IUC) increases on average by 0.8%, but the climbs will be able to reach a maximum between 6.5% and 8.8% for more polluting vehicles.

So, if the cars have emissions of between 180 and 250 grams per kilometre, corresponding to an increase of 38,08 euros, representing an increase of 6.5%, while if the mark of 250 grams per kilometre is exceeded, the invoice will have an increase of 65,24 euros, equivalent to 8.8%.

As the Vehicle Tax will rise by around 3.2 per cent, according to the accounts of the National Association of Trade Companies and Car Repair (ANECRA).

Telecommunications

In telecommunications, the Meo said to the Lusa that “there has been an update of the pricing in November of this year, an average of 2.5%, in anticipation of the updates that typically were made at the beginning of each year.”

Already the US has said that there is no projected increases and, on the same line, official source of Vodafone Uk said “is not expected” that the operator “make a generalized increase of prices, as came to pass in the past, where prices were updated at the beginning of the year.”

The Nowo (mark of the Cabovisão), in turn, “has opted to only raise prices in January, with an average total of 5%”, said to Lusa the chief executive officer of the telecommunications operator, Miguel Veiga Martins, noting that “this increase varies depending on the type of service subscribed to”.

The person responsible explained that “the reasons for this increase are the fact that [the operator] want to maintain the quality of services that it offers to its customers, but also to respect the agreement of sharing of tv rights of football, celebrated in July, with other carriers”.

Electricity

The electricity tariffs in the regulated market will rise by 1.2% for domestic consumers from January 01, which represents an increase of 57 cents to an invoice monthly average of € 47.

The rates the transitional to consumers who have not yet migrated to the liberalized market, which shall be in force until the end of 2020, have the variation the lowest since 2006, the year in which the increase was also 1.2%.

Already the social tariff of electricity will continue to represent a discount of 33.8% in relation to rates, transient sales to final customers (before VAT and other taxes), that is, the reference prices in the regulated market, but consumers who are already on the free market benefit from the same reduction.

Gas

The rates transitional natural gas are unchanged at 01 January, once that upgrade pricing only happens the 01 July to the consumers that remain in the regulated market.

To 01 July 2016, the natural gas prices decreased by 13.3% to domestic consumers, 14.6% to the business and 20.2% for industrial consumers.

This second reduction in rates in 2016 has benefited all consumers of natural gas (about 1.4 million) due to the reduction of tariffs for access to networks determined by the regulator of the energy sector.

Before, the 01 may, rates had fallen by 6.1% for domestic consumers, 7.5% for the consumer business, and 10.2% for industrial consumers.

Toll

The tolls should have an increase in 2017, after three years of virtually not had updates.

The consumer price index of October, excluding housing, which serves as a reference to the annual update of the tolls, was of 0.84%, this being the proposal that the concessionaires of highways have made to the Government. The final decision should be known next week.

Milk

The director-general of the National Association of Industrial Dairy products (ANIL), Paulo Costa Leite, says that, “given the current situation do not perceive substantial changes” and that, “where there is no abnormal situations of the market, by excess or by defect, the price for a liter of milk should remain at the current levels”.

The responsible of ANIL admits, however, that it would be desirable to bring the prices “to levels of greater reasonableness”.

A quart of milk costs on average between 42 and 55 cents, but the industry itself admits that it is difficult to ascertain an average price, given “to the rhythm and intensity of the promotions.”

The president of the National Federation of Cooperatives of Milk (FENALAC), Fernando Cardoso, stressed that the distribution has “availed many times a large supply of milk existing in the market to press the price so irrational”, but also does not expect major changes.

“There will may be some adjustments, but will always be small, of the order of cents,” said Fernando Cardoso, noting that “the most important thing is to recover the prices to levels-rational and end up with the deals that destroy value” that undermine “the sustainability of the entire chain”.

Bread

The price of bread should not suffer increases in the next year: “it is Not perspective, this is still not good and we can’t win,” said the secretary-general of the Association of Commerce and Industry of Bakery, Pastry and Similar (ACIP), Grace Callisto.

Currently, housing costs an average of between eight and 12 cents for a loaf of bread 40 grams), values that vary depending on the regions and the weight, and if they should keep stable in 2017, unless there are significant changes in the costs of raw materials.

Other factors for the fluctuations in the price of bread, as well as for most industries, are fuel and salaries.

“Let’s see how it looks, is still a thing uncertain,” said the responsible of the ACIP.

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