Government amends VAT code to combat fuel fraud

Thursday, 11 June 2026AI summary
Government amends VAT code to combat fuel fraud
Photo: ECO

The government has approved a new law to amend the Value Added Tax (Imposto sobre o Valor Acrescentado or IVA) code specifically for the fuel sector. Minister of the Presidency António Leitão Amaro stated the changes aim to curb significant tax fraud by altering how the system functions.

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.

António Leitão Amaro is Portugal's Minister of the Presidency (Ministro da Presidência) in the government led by Luís Montenegro. He is a key figure in the Social Democratic Party (Partido Social Democrata or PSD) and often is the government's spokesperson. Those following housing and rental policy should note his role in announcing the June 2024 measures regarding evictions and inheritances.