Latest news and stories about tax policy in daily life in Portugal for expats and residents.
Sérgio Vasques examines the Youth IRS policy, arguing that while the fiscal costs were predictable from the outset, the actual benefits of the program remain a subject of debate.
Chega party leader André Ventura has challenged the Socialist Party to support upcoming legislative proposals aimed at reducing VAT on fuels and eliminating VAT on essential food items, with a parliamentary debate scheduled for September 24th.
The Socialist Party is pressuring the government to reduce VAT on fuels from 23% to 13% as prices for diesel and petrol surge due to international market volatility.
Fuel stations in Portugal are implementing historic price hikes this Monday, September 7. Diesel prices have risen by a net 12 cents per litre, reaching a record average of 2.149 euros, while petrol has increased by nine cents, marking its sharpest weekly rise in four years. To mitigate the impact of rising international refined product costs, the government has introduced an additional three-cent cut to the ISP fuel tax. Despite these measures, filling a 50-litre tank now costs significantly more, with the government ruling out any reduction in VAT, a move contested by the opposition.
Adjustments to ISP tax rates reduce the relief estimated by the sector.
The ordinance that reduced tax on diesel will be applied to petrol once the cumulative increase exceeds 10 cents per litre. For diesel, the ISP tax will be adjusted with each new increase, though only slightly.
