Economist Filipe Grilo considers that applying Zero VAT would be “ineffective” as a response to the impacts of the conflict in the Middle East. Conversely, he highlights the solidarity gas cylinder measure as positive. “It is more targeted, cheaper, and reaches the people who need it most.”
“Zero VAT tends to be ineffective”
Thursday, 19 March 2026RSS
Context & Explainers
VAT is Value Added Tax (Imposto sobre o Valor Acrescentado), a consumption tax charged at each stage of production and sale; the standard mainland rate in Portugal is 23%. Parliamentary proposals to cut VAT on bottled gas from 23% to 6% would directly reduce consumer prices if approved.
