Analysis suggests that the zero VAT policy is ineffective, even when applied to essential food items.
4 PM: Zero VAT is not an appropriate measure, not even for the food basket
Friday, 27 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.
