What is the price of chicken, eggs, pasta, sugar and bread with the VAT reduction?

With information from URPI

The temporary exemption from the General Sales Tax (IGV) came into force at the beginning of May. This occurs after the plenary session of Congress approved with 97 votes in favor, nine against and two abstentions this measure that seeks to lower the costs of the products of the basic basket.

Check the variations in the prices of different foods such as chicken, noodles, egg and sugar in the markets of Villa El Salvador, Chorrillos, San Juan de Miraflores and Surquillo during the second day that this regulation has been carried out.

How much has the price of the basic basket products varied in different markets?

After taking effect the measure from May 1, in the market Cooperative Sarita Colony (Chorrillos district), prices have shown a slight decrease. A kilo of sugar costs S/ 4, one sol less than the price of S/ 5 where it was 15 days ago. For its part, the cost of a kilo of eggs fell slightly, from S/ 7.50 to S/ 7.30, while the noodle remains fixed at S/ 3.80. In this line, chicken can be purchased between S/ 7 to S/ 7.50, a lower cost compared to the S/ 9 that it cost a few days ago.

“I believe that the VAT is theoretical and in practice it will not be fulfilled for the reason that I bought 10 sacks of sugar last week and I cannot lower it because my costs have not lowered, they will have to sell me wholesalers, they will have to show me the down for me to come down just now,” one of the grocery sellers told La República, who showed his discontent because the new decree would affect him for having bought basic necessities weeks ago at a high price.

Likewise, at the market on 1 Surquillo (Surquillo district), the price of a kilo of eggs has not decreased: for three weeks and it remains at S/ 8. Similarly, the value of a kilo of noodles and sugar has increased: from S/ 3 to S/ 4.80 and from S/ 3.80 to S/ 5, respectively. Finally, the chicken is located at S/ 7.50, which is equivalent to only a reduction of S/ 1 of the normal cost.

“You can’t see the result, it was supposed to go down but there was no drop and those prices have been there since last week,” said one of the store’s merchants.

in the district of Villa El Salvador, in the May 12 market, prices have also been reduced by a minimum percentage. The cost of a kilo of sugar is S/ 4 compared to last week which was located at S/ 4.50. Similarly, the kilo of egg went from S/ 7.50 to S/ 7 and the kilo of noodles remains at S/ 3.50.

This low decrease in prices has caused many merchants to be skeptical about the measure that exonerates VAT on some products. “A great story, nor is it going to be carried out, first it must attack the inputs to produce the noodles; If you don’t attack the input, how are you going to believe that the noodle is going to cost less and the dollar is rising? As a merchant, I realize that it is not true (the IGV exemption)”, indicated a seller.

In the market Miguel Iglesias (district of San Juan de Miraflores), the price of a kilo of chicken has decreased between S/ 0.50 and S/ 1 and stands at S/ 7. For their part, the sellers do not know the reasons for the decrease in this product: “ It has gone down, we don’t know, I don’t understand why the bread is expensive, it was supposed to be because of the corn, but now the chicken has gone down. (About the IGV) I was not aware”, said one of the merchants.

In addition, in this wholesale market, a kilo of eggs costs S/ 1 less than in past weeks and is at S/ 7, while a kilo of sugar went from S/ 4.50 to S/ 3.70. As in the other markets, the noodles are sold at the same price of S/ 3.80.

The product that has shown a reduction in its cost has been chickenmany users can purchase it for up to S/ 5.50.

“(It is) S/ 6.80 and last week at S/ 7.50. Well than it was (before), now at least you can eat because it was up to 10 soles and (the reason) I don’t know, but everything (the rest) is expensive and the government does nothing, “said a buyer.