Basic food basket up 21%

… in just one year

Basic food basket up 21% 1

The Diario headlines that the price of a basic food basket has risen 21% in one year is the subject that makes the headlines of the Diario today. 

Oils, vegetables, eggs, milk and derivatives top the list of the 17 essential goods that have become more expensive in Madeira due to inflation and speculation. 

The newspaper reports that Regional Government will accept 0% VAT only with guarantees that the decrease will be reflected in consumers’ pockets. 

The Madeiran socialist pasty, reported by JM, wants to know what additional measures the Regional Government has to present to Madeirans to help families face the increase in the cost of living.

Calls for complementary aid measures

In a press conference held this morning in the centre of Funchal, the parliamentary leader of the socialists highlighted the fact that, given the increase in the cost of living and the difficulties experienced by the Portuguese, the Government of the Republic presented yesterday a package of measures that includes the reduction to 0% VAT on essential food items, a 1% salary increase and an increase in the meal subsidy for the Civil Service, monthly support of €30 for families up to the 4th step of the family allowance, plus €15 for each child, as well as support for agricultural producers in the order of €140 million.

Stressing that this support will also cover Madeirans, Rui Caetano asked, however, “what additional measures is the President of the Regional Government going to present to Madeirans, in addition to those that are already in force and that were already in the budgets”.

The socialist leader clarified that the Regional Government has autonomy and its own budget and realized that there is a forecast of tax revenue of €1000 million that the Executive “will seek from the pockets of Madeirans”, to add to the extraordinary 80 million raised last year. “There are a billion euros in taxes that need to be redistributed to Madeirans. The Regional Government cannot continue to base its policy on inertia, propaganda and not implement concrete and objective measures”, he warned, also taking the opportunity to criticize the fact that the Executive has the power to apply the 30% tax differential in VAT rates and in all levels of the IRS (income tax), but does not do so.

Rui Caetano, therefore, demanded that the Regional Government present complementary measures to the package presented by the Republic Government

4 thoughts on “Basic food basket up 21%”

  1. Ouch! 21%

    Does this figure apply just to Madeira or to the Azores & mainland too I wonder?

    The monopoly transporting food to the island must be a big factor.

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  2. As an aside there was talk last year of the VAT rate on electricity being reduced front the highest level of 22% back to the 5% it was before the financial crisis and the discovery of billions of Euros in undeclared hidden Regional Government debt. Somehow I think cutting electricity bills by over 15% would be more helpful than a 5% cut in essential foods that the supermarkets may or may not for a few days or weeks cut their prices.

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