Portugal: Prime Minister announces tax measures to combat energy inflation
Portuguese Prime Minister Antonio Costa presented a package of measures aimed at mitigating the recent surge in gasoline and energy prices. The announcement stipulates that:
- Carbon taxes have been delayed until June 30.
- By June 30, there is a cut in the tax on petroleum and energy products (ISP).
- For March, auto-voucher subsidies are raised to EUR 20 per beneficiary.
The major action is to restore to customers the government’s Tax on Petroleum Products, which is imposed at the time of sale of gasoline.
Prime Minister Costa said that cutting VAT would be impossible unless the European Union (EU) granted approval, and that discussion among member states had already taken place, with “a decision expected in the coming weeks.”
Fuel prices in Portugal will continue to rise in the next weeks, but the government’s goal is to compensate for inflation by decreasing taxes, according to Costa. The government will assess the price of gasoline every week in an attempt to determine a return to taxpayers based on the rise in expenditures.
Costa also said that the EU aims to move to minimize its reliance on foreign energy sources, expand state assistance, and support “necessary steps” to limit “increasing industrial prices.”
Source: portugal.gov.pt
