The National Meat Institute (INAC) issued a report where it analyzes “the impact of the application of the VAT exemption to the frozen and cooled roast cut of 10 or 13 ribs”.
The study carried out the survey of prices until the month of april inclusive, specifically until April 23, 2022. It concludes that the exemption from the minimum VAT (10%) for the aforementioned cut, generated the increase in volumes sold and also a decrease in prices.
“In the five weeks after the law came into effect, 1,297 tons of roasted 10 or 13 ribs were marketed, doubling the volumes compared to the previous five weeks. Retail prices showed an evident drop, which in the weeks of greatest impact, reached 9.5% in relation to the week prior to the exemption”, the study explains.
He also adds that the “demand for other roast cuts was also affected, generating a positive effect on their marketing.” The study continues stating that in Montevideo, a web survey was carried out, where a total of 95 points of sale were taken as reference. It is argued that “88% of the points of sale marketed the roast cut of 10 or 13 ribs”.
From this, it emerges that “the analysis of the average sale price that emerges from the web survey, allows us to point out that 75% of the points of sale in Montevideo, sold the consumer the roast cut 10 or 13 ribs at a price less than or equal to at $230”.
Roast without VAT until May 23
It should be noted that the Executive Power decreed the extension in the month of April until May 23 of the VAT exemption for fresh beef. But also frozen or chilled from the roast cut from 10 to 13 ribs.
