In recent months, supermarkets have been under scrutiny by the government to ensure they are not taking advantage of a VAT reduction on food to boost their profit margins. This temporary measure was put in place to control inflation, but some chains have asked for more time to provide proof that they are passing on the discount to customers.
The Ministry of Consumer Affairs launched an investigation into major retail distributors in February to verify this. However, some chains have requested an extension of the deadline set by the ministry. The ministry has stated that all necessary information has been submitted and is currently being reviewed.
Additionally, the National Commission of Markets and Competition (CNMC) is also monitoring supermarkets to ensure compliance with anti-crisis regulations. 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 for another round of negotiations with the government over extending the VAT reduction on basic products beyond its expiration date in June. They want to keep it in place until the end of the year and expand its list of affected products, including essential items like meat and fish. The industry is hoping for political stability to expedite the processing of relevant bills.
Overall, it seems that both supermarkets and food companies are working towards keeping prices low for consumers while also ensuring compliance with anti-crisis regulations.