Dear Editor,
Regarding the information being circulated by all media with reference to the abolishment of the 1 and 2 cêntimo coins, surely the EU and governments cannot think that we are all stupid.
If an item costs 51 cêntimos, the next coin in circulation would be the 5 cêntimo coin – an increase of 4 cêntimos; 23% on 4 cêntimos is not a lot but 23% on the millions of items sold every day runs into a lot of extra income for the EU and governments. Also, these extra 4 cêntimos are all profit as they are not passed on from producers and suppliers, so will also generate tax income for governments, but it does not stop there. Take petrol alone – if the petrol stations, because of the rise in the cost of crude oil, need to increase fuel by 2 cêntimos they cannot because there is no 2 cêntimo coins, so will have to increase it by 5 cêntimos.
Yes, I think you may have the picture – more IVA and more tax, but remember this will apply to all products, not just on the changeover but forever. Everything will go up by 5 cêntimos. This will stretch even more the income of a large percentage of already cash-strapped people here in Portugal, and push a large number over the edge.
The governments and EU will also save money as they do not have to produce 1 and 2 cêntimo coins. It is a win-win scenario for the EU and governments, and a lose-lose scenario for the people.
My Portuguese is not good enough to translate this but I wish I could because I think all the Portuguese need to be made aware of yet another blood-sucking scheme to make the people pay for the governments’ screw ups. I think we need to make our feelings felt, to the government and the EU, that enough is enough.
Keith
Algoz
