Saturday, September 30, 2023

Rowing against inflation | First day of the “Purchase without VAT” program

From this Monday, the “Purchase without VAT” program came into force, which reimburses 21% of purchases made in stores that sell food, drinks and cleaning products. From the food retail sector, they celebrated the measure because they understand that it is aimed at customers who usually shop in local stores, while supermarkets anticipated the possibility that the announcement could reverse consumption levels, which has already been the case for several months fall long. According to the provincial government, the benefit does not currently apply to the use of the Santa Fe Wallet.

Economy Minister Sergio Massa announced last week the launch of a value added tax (VAT) refund program aimed at purchases made with a debit card in stores that sell products in the shopping cart. Staple food. The measure is aimed at monotributists, pensioners and pensioners, beneficiaries of social plans and employees in a dependent relationship with salaries of up to 708,000 pesos, with the reimbursement limit being 18,800 pesos per month. The announcement is part of a package of measures aimed at mitigating the impact of August’s devaluation, which pushed up product prices and pushed inflation to its highest in 32 years at 12.4%.

In this context, the Rosario Almaceneros Union Center assessed that the measure was “very well received” by customers, but also by the traders who are part of the organization. “It had a very interesting impact on buyers. And I think that it will also benefit us a lot because it is a concrete measure and without too many twists and turns,” said Juan Milito, representative of the organization that brings together local businesses, in statements to Rosario/12.

According to the market leader, some recent price fixing has pushed customers to turn to supermarkets, leaving warehouses and neighborhood stores vulnerable in this situation. However, they warned that this announcement would change that logic. “Sometimes measures are taken, such as fair prices, where the program itself encourages people to shop in hypermarkets. And that not only hurts the businesses in the neighborhood, but it also doesn’t reach the recipients who need it most, namely the people who buy from us,” he explained.

“In this case it is clear that there is the political will to do it well and it will benefit us all. A virtuous circle is created because a lot of money is put into food consumption and it increases in the real economy because everything that happens here will be empty. It will quickly impact the customer’s wallet,” he added.

Currently there will be no discrimination based on products, as originally announced, but based on categories and commercials. In this way, for purchases made at the premises where the sale of food, beverages and cleaning and hygiene products is possible, the corresponding refund will be credited to your account 48 hours after the transaction is completed. The measure will remain in effect until December 31, but there are plans to keep it in effect by law for part of next year.

“It is a clear and concrete direct measure that includes the establishments we have set up as premises for the sale of food, drinks and cleaning. And it’s good that it is like that, because if you start segmenting by product, you end up shrinking and it doesn’t reach people or the company,” Milito said happily. “We must try to ensure that the benefits reach the parts of the population that urgently need them,” he added.

Meanwhile, the Rosario Chamber of Supermarkets stated that the measure is having an impact from day one. “Sales on Monday morning were slightly greater than at other times,” said Sergio López, head of the organization, in statements to this medium. “It is an advertisement that benefits the consumer so that he can maintain his purchasing power, which is so low today,” he added.

From the company’s side, they indicated that consumption had been falling for several months and they anticipated the possibility that the VAT refund could provide a boost in this sense: “We know that it is a sporadic measure and that it does not specifically attack the big ones.” Scourge What is inflation? But we understand that this is a stimulus and that the impact will be felt quickly in our sector.”

Santa Fe wallet

For a couple with two minor children, the measure can mean a refund of 37,600 pesos in a month. However, if we add the Santa Fe Wallet reimbursement, which has increased to 8,000 pesos per user since September, the final benefit for a typical family can reach 53,600 pesos.

However, for the national “purchase without VAT” program to apply, purchases must be made using a debit card. For payments with digital wallet credit, there will be no refunds for the time being. However, the national government clarified that there will be a series of meetings this week to include these companies in the VAT refund program.

In the case of Billetera Santa Fe the same situation applies. The provincial government stated that the benefits are independent and that the VAT refund will not be made through the provincial virtual wallet. However, they also clarified that the situation may change if the national government reports it.

Nation World News Desk
Nation World News Desk
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