The Executive promulgated the rule this afternoon, although merchants warn that it will take a few days to see its impact.
He Executive power promulgated the law that endorses the tax exemption for bottles of water with and without gas, which will begin to take effect this Friday and will end when the water emergency that was decreed on Monday President Luis Lacalle Pou for Montevideo and the metropolitan area, in the middle of the water crisis.
However, from the Uruguayan Supermarket Association (ASU) warned that the rule will have a real impact From next monday, noting that they expect to receive the new price lists from that day. The objective of the law is that the price of bottled water, which has increased in recent weeks, go down to a third, according to official calculations.
Regarding the full validity of the measure, the ASU General Manager, Daniel Menendez, expressed: “I calculate that on Monday we will be receiving a new price list without taxes.” In dialogue with Telemundo, he considered that there will be no explosive rise in consumption as a result of the drop in prices and stressed that “suppliers are adjusting to the new demand and there is more production.”
Regarding the stock, Menéndez estimated that there will be no shortages. “I do not manufacture or import water, I buy water. But from what has been discussed with natural suppliers, there is a flow. I think there will be no problem with water supply,” he predicted.
After the enactment of the law, a drop in bottled water prices is expected
The law, which was voted unanimously in the Senate and with just one vote against Deputies, provides that mineral waters and sodas are exempt from VAT, along with “a refund regime” in some cases.
Regarding the drop in prices, Menéndez said that it will be something that will occur naturally. “Uruguay is free and trade is free. In Montevideo and the metropolitan area there must be hundreds of places where one can buy water”, began his argument. For the supermarket, if a person sees that the price is maintained, “within 200 meters around going to find a place to get water at the corresponding price”.
Source: Ambito
