PS proposes that the Government lower fuel taxes and apply zero VAT to the food basket

Wednesday, 1 April 2026RSS
PS proposes that the Government lower fuel taxes and apply zero VAT to the food basket

The document asks the Government to adopt 15 temporary measures to alleviate the cost of living following the effects of the war in the Middle East.

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.

Inflation measures how much general prices rise over time, usually reported year‑on‑year to compare a month with the same month a year earlier. Portugal’s National Institute of Statistics (INE) estimated January inflation at 1.9% year‑on‑year, down 0.3 percentage points from December, which affects rents, wages and everyday purchasing power for residents.

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