Shampoo, soap, clothing, hair dye, mobile telephony, fast food, ketchup and even the wincha service are among the 208 products and services subject to VAT, which will rise to 14% for a whole year, probably from June.
The VAT hike was established in the Solidarity Law to address the effects of the earthquake, adopted by the Assembly last Thursday and is still awaiting for the approval or veto by the Executive branch.
In number, these 208 products subject to VAT represent 55% of household purchases. However, considering the weight of the products subject to VAT, they account for 49% of expenditure of a home, according to the Corporation for Development Studies (Cordes).
The weight drops to 47% if fuels are excluded, since Assembly members included a change in the bill to prevent that the VAT increase impacts on the prices of these products. Meanwhile, a total of 151 products do not pay this tax , including 90% of fresh foods and medicines.