Braçe calls on traders: Tax cuts must lead to lower prices for citizens

Socialist MP Erion Braçe has commented on the fiscal measures package set to take effect on January 1, 2027. He says the cut in VAT on food to 6% and the removal of the circulation tax from the price of diesel and gasoline must be passed directly on to consumers.

Braçe explains that, until now, neither fresh nor processed foods have been taxed at the 6% VAT rate. Under the change taking effect at the beginning of next year, he says, the rate will be reduced by 14 percentage points.

He describes both measures as social interventions aimed at lowering food prices and the costs of private, public and industrial transport, thereby easing the cost of living.

According to the MP, the challenge is to implement the measures effectively and ensure that the full tax relief reaches citizens through lower prices. For this reason, the two months before the measures take effect should be used to prepare and approve mechanisms to prevent traders from pocketing the benefits of the tax cuts.

Braçe expresses concern about market concentration and economic operators’ interest in benefiting from the changes. He calls for measures to ensure that consumers are the only beneficiaries of this relief.

“These are not measures whose benefits should be shared between citizens and traders. Citizens must be the only beneficiaries, and they should be able to buy goods at exactly the lower prices envisaged by these two measures,” Braçe says.

Finally, the socialist MP calls on the responsible institutions to take concrete steps to ensure that prices actually fall after the fiscal changes are implemented. He stresses that it must not be tolerated for the relief to fail to reach consumers.