Skopje, 9 October 2023 (MIA) – A family of four in the country needed Mden 48,379 to cover the minimal consumer basket in September, said the Federation of Trade Unions of Macedonia (SSM) on Monday.

SSM added that the September consumer basket has decreased by Mden 966 compared to the previous month, as a result of the guaranteed prices of food products.

"The VAT increase on those products will again increase the value of the consumer basket, i.e. the measure for guaranteed prices for basic food products will not have any effect. That is why, SSM demands that the Government seriously revises and corrects the list of products that citizens use daily and restore the VAT rate of five percent," SSM said.

The Unions also point out that the decision to set the VAT rate from 5 to 10 percent is reckless and does not correlate to the reality of poverty and increased cost of living that are typical for the large part of the population, mainly due to low wages and over 120,000 employees who receive minimum wage.

"We suggest the 10 percent VAT rate be kept only for the luxury food products that are bought by a few citizens and are rarely consumed. If this list of proposed food products whose VAT is increased to 10 percent remains, everyday food products such as cheese, canned food, wheat, tea, will become a luxury," SSM stressed. 

SSM noted that according to the latest data published in 2020 by the State Statistical Office, 21.8 percent of the population is living in poverty. The Unions warn that due to the current economic situation, the delay in government measures, the increase in food prices, the VAT increase from 5 to 10 percent further increase in poverty by 25 percent is expected.

"The economy needs quick and serious measures though new investments and ventures, development of new capacities, increased support and subsidization of certain economic areas, which will lead to an increase in wages and decrease in poverty," SSM pointed out. ssh/nn/

Photo: MIA archive