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Help, is that much?



This government does many things well. The best? Sell. If we were to take a survey today, we would easily see that we have stuck to a reduction in value-added tax for basic food products, with a promise of financial aid to those who need it and with a limitation of rent increases, so that it penalizes the pockets of the citizens a lot. That’s good, isn’t it? Yes that’s good. No doubt. how good? That’s another thing! If the increase in the shopping cart is 15% and if a family with two children spends 381.5 euros per month on food and non-alcoholic drinks, according to INE, then the increase in cost was 686.7 euros in 2022. To which is added the new tax on plastic that goes directly to the prices. It is difficult to quantify the monetary impact of the VAT reduction because of the variety of reduced or eliminated rates and the way they are converted into prices and because it only affects 60% of essential foods, with important foods remaining outside the scope of changes such as meat. and fish. They estimate to save 150 euros. The promised aid is €200 (€0.54 per day) which, together with the estimated savings in VAT, is not enough to offset the price increases. For the target group – estimated by the government at 4.2 million citizens – the situation will be worse at the end of the year than it was at the beginning. For the rest I do not comment and I remember that a family in which two of its members receive SMI would be included in that rest, with their income would exceed the fixed limit of €27,000. We’ll see how many actually shipped. And as an example of generosity, it can be improved because it is clear that the committed spending is far – far away – from an additional 33,000 million tax levies due to the effect of inflation on the prices of all goods and services. The 20-cent reduction had a cost of $6,000 million to the public treasury that would be greatly reduced when aid was withdrawn for individuals. More information Yes, the VAT cut traps thousands of small neighborhood shopkeepers without a margin to lower their prices. Finally, the rent reduction does not cost the state, the effort is made by the owners and the penalty is on the savings. But what are they complaining about? Yes they are the owners!

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