IIES, Stockholm University (@iies.su.se)

1/ In 2023, Portugal cut VAT on 46 basic food items - from 6% to 0% - to fight inflation. The big question: would retailers pass the savings to consumers? A new study says yes - and it worked better than almost anywhere else. 🧵 www.su.se/institute-fo...

loading . . .

Cutting VAT, Cutting Prices: How a temporary tax policy brought real relief to Portuguese shoppers - Institute for International Economic Studies What happens when the government slashes taxes on basic food items? Do prices actually fall or do retailers pocket the difference? In 2023, Portugal put that question to the test. In an effort to ease... https://www.su.se/institute-for-international-economic-studies/news/cutting-vat-cutting-prices-how-a-temporary-tax-policy-brought-real-relief-to-portuguese-shoppers-1.828772