The commercialization of the roast at $230 per kilo, which in principle applies until Thursday, April 21 after having been approved by law for 30 days, will be extended for another month, as announced by the President of the Republic this Monday during the press conference given at the Executive Tower.
Luis Lacalle Poualthough he clarified that the issue should be considered with the Minister of Economy and Finance -Azucena Arbeleche, present at the conference-, left the door open for the extension to happen, for the only time.
Measure
The price of beef had an estimated increase of 25% from mid-January to mid-Marchaccording to data from the Meat Vendors Union (UVC). The government, in the middle of last month, decided to exempt from VAT the strip roast (10%). That, plus the contribution of different actors in the chain so as not to increase the prices of bone-in cuts and even reduce some prices, made it possible to lower the value of the roast, which then had a floor above $300 per kilo. The momentary reduction of VAT was made through a bill that the Executive sent to Parliament, where it was quickly approved. The tax waiver of this measure was estimated between US$650,000 and US$1 million (the final amount will depend on the final sales volume of that cut and in the period now extended for another month).
The decision is well seen by the butchers, based on a survey carried out by The Observer just finished the press conference.
merchantsin addition to noting that they trusted that this decision would happen, They have primary data that establishes that the demand has been relevant, so much so that in some places the sale of barbecue grew 50%, and they have also seen that not only has more barbecue been sold since the end of March: there has been an increase in demand for other butchery products.
In addition, they highlighted that This extension of the benefit considers a period that involves one of the peaks in demand for barbecue (prior to the holiday of Sunday, May 1).
Camilo dos Santos
The roast, at the new price.
Finally, the butchers pointed out two difficulties, one that they already appreciated and persists, and another that still needs to be faced.
On the one hand, they remembered that the supply of the roast at the mentioned price has been fluid in butcher shops in the capital and in several locations in the country, however this has not happened throughout the territorythere are complaints from members of the butchers’ unions who do not receive the product at a price that allows them to transfer the offer to the clientele.
For another, there are some doubts as to whether the product is delivered in the right volumesso as to be able to satisfy the aforementioned growing demand on the eve of May 1st.
