Raising VAT on basic products at a time when food inflation is running at nearly 20% in supermarkets is irresponsible, consumer organisation Testachats said on Thursday in reaction to the tax reform bill championed by Finance Minister Vincent Van Peteghem.
The bill includes scrapping the reduced VAT rates of 6% and 12% in favour of a single reduced rate of 9%, and 0% VAT on vegetables, fruit, medicines, nappies, products for intimate hygiene, and public transport.
Testachats said it welcomed the proposal to reduce VAT to 0% on these goods and services but argued that many other basic necessities would fall into the category for which VAT would rise from 6% to 9% and would therefore see their prices increase.
"At Testachats, we can only be surprised that an increase in VAT on basic products such as bread, eggs and dairy products is being considered at a time when the shopping cart price has exploded, said Julie Frère, the organisation's spokesperson.
Testachats is therefore calling on the government to abandon its plans to increase VAT on these basic commodities.
