The Portuguese government is implementing new measures to address rising prices of essential products, including certain types of seafood. To counteract this trend, the government will temporarily exempt some seafood products from VAT, including Atlantic Cod, Sardines, Hake, Horse Mackerel, Sea Bream, Mackerel, and Canned Tuna. This exemption will be in effect until October 2023.
While this move is initially seen as a positive step towards tackling rising prices, many wholesalers, manufacturers, and processors are concerned that the tax reduction will not be passed on to consumers. Instead, they fear that large retailers and distributors will absorb the decrease in VAT, leaving consumers without any benefit.