Finance Minister warns against VAT cuts

Sunday, 20 September 2026AI summary

🏛️ Government 💶 Finance #cost-of-living #state-budget #government-policy

Finance Minister warns against VAT cuts — Photo: Dinheiro Vivo

Finance Minister Joaquim Miranda Sarmento warned that reducing VAT on fuel and essential food items would cost two billion euros and push public accounts into a deficit. The PS and the Communist Party (Partido Comunista Português or PCP) continue to advocate for these measures to mitigate the rising cost of living.

Context & Explainers

Minister of State and Finance (2024–present)
Party: Social Democratic Party (PSD), Partido Social Democrata
Background: Economist, university professor (ISEG)

Joaquim Miranda Sarmento is Portugal's Finance Minister in the AD government led by Luís Montenegro. An economist and professor at ISEG (Lisbon School of Economics & Management), he served as PSD parliamentary group leader before joining the government.

As Finance Minister, he oversees the state budget, tax policy, public debt management, and fiscal relations with the EU. His decisions on tax brackets, IRS withholding tables, housing incentives, and public spending directly affect residents' cost of living and investment climate.

António Filipe is a politician from the PCP (Partido Comunista Português) who, in this story, acknowledged that his election results fell short and said the party would join forces to oppose what it called a 'serious threat to democracy'. His remarks indicate the PCP intends to be active in post-election alliances rather than withdrawing from national debates. Voters and those following left-wing politics should pay attention to his and the PCP's next moves.