Portugal’s Opposition Proposes VAT Exemption for Some Food Items

Portugal’s Socialist Party, the country’s biggest opposition group, said it would permanently cut the value-added tax rate on certain essential food products to zero if it’s able to form a government following a general election next month.

The VAT exemption is part of a set of proposed measures that would aim to reduce the cost of living for families, Socialist leader Pedro Nuno Santos said in Lisbon on Saturday. The Socialist Party also said its proposals include creating “permanent instruments” for financing construction of public housing to help address a lack of affordable homes.

Portugal currently has three VAT rates: ...