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Customers and Economists Skeptical About Lowered VAT Impact on Food Prices

Basic foods are supposed to be cheaper from the new year thanks to a lower VAT rate. While sellers say prices have already gone down, customers and economists don’t think so. In addition, the control New Year’s purchase of Nova TV showed that some foods are more expensive.

There are no pennies in your wallet for a long time, but some sellers are outright bragging about them on New Year’s flyers. That’s how much people have to save. “We projected the VAT price in full. The price of rolls, which was 2.90, is now 2.82,” said Tomáš Kubík, spokesman for the Penny Market store network.

For one of the shoppers, Mr. Novák, one kaiserka cost 4.90 crowns on New Year’s Eve, only 4.77 just two days later. “It’s purely cosmetic. Who will it help if I go for a bun and pay six pennies less for it? That this is how the government is serving it to us and it’s not ashamed,” he says, upset about the change.

​Although most basic foodstuffs have moved from the 15 percent VAT rate to 12 percent, customers in Hradec Králové, for example, did not notice this. At the same time, some traders claim that they already discounted prices at the end of the year. “We have reflected the reduced VAT in the price of all foods that are subject to the reduced rate,” said store spokesman Albert Jiří Mareček. “Kaufland will additionally round down the new prices for more than six thousand products from this group, and thus relieve customers’ wallets,” said Kaufland store spokeswoman Renata Maierl.

Food price graphics | Source: TV Nova

If you compare the prices in the same store with last August, bread still costs the same. Butter is four crowns more expensive on average, as are apples. “The price mainly depends on how the suppliers behave. If they didn’t raise prices, food will be cheaper thanks to VAT,” adds Tomáš Prouza, president of the Trade and Tourism Association.

According to experts, no significant discounting can be expected, because historically the reduction of VAT has never been reflected, or only very little, in the prices of merchants.

jko, TN.cz

2024-01-02 19:31:00
#VAT #food #cheaper #people #complain #expensive #TN.cz

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