The private sector suggests extending the exemption from Value Added Tax (VAT) for a period of five years.

The measure, according to CTA vice-president Maria Abdula, quoted in "O País", will allow prices for basic necessities to fall and reduce the cost of imports.

Maria Abdula was speaking on the sidelines of a workshop promoted in partnership with the International Labor Organization.

It should be noted that the government has decided to remove VAT on basic necessities and some raw materials, as a way of easing the cost of living aggravated by the post-election protests.

The executive's measure is due to take effect this year, but the private sector suggests extending it to five years, arguing that it will allow the value chain to develop.

Also quoted in the publication, the private sector believes that the inclusion of VAT in the long term will allow prices of the main food products and raw materials to radiate.

Organized by the Confederation of Economic Associations in partnership with the International Labour Organization, the workshop focused on State Procurement and Industrialization.