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Government accounts expect diesel to fall by 17 cents a liter next week and gasoline to fall by 13 cents, depending on the downward trend in world prices this week. Despite these expectations, and contrary to the terms of the “fiscal neutrality” formula that was approved last week, the Ministry of Finance (for the time being) is giving up offsetting the loss it will incur in value-added tax with the corresponding increase in the tax on petroleum products.
“Given the uncertain conditions for the development of the situation as well as the expectation of coordinated responses at the European level – and even if a sharp drop in fuel prices is expected next week – the corresponding ISP (tax tax) will not be updated this week. Petroleum products), while maintaining on the ISP’s temporary discount of 3.4 cents per liter for diesel and 3.7 cents per liter for gasoline.” This deduction includes the first tax cut approved last year and made last week.
The decision not to increase the ISP in this context prevents the oil tax hike from ruling out the dimension of the price drop expected in the next stage, which will be the largest at once. If the VAT refund formula lost as a result of the price drop were to be applied, the oil tax would increase by 2 cents on gasoline and 2.6 cents on diesel. But this loss of tax revenue per liter of fuel is temporary, as the Treasury notes that it will “implement the formula again next week with corresponding adjustments.”
The Finance Ministry also stresses that in order to give the government flexibility in possible measures to mitigate any further hikes in fuel prices, an official request for a reduction in the value-added tax rate applicable on the sale of fuel has been submitted to the European Commission in Brussels, Portugal.
The government states that the promotion of reimbursement of expenses at service stations via automated voucher is still in place and reveals that 2.4 million taxpayers have already registered in the month when the value rose to €20 for the first supply.
Andrea Hargraves is a contributor to Brytfmonline.com, covering a broad range of topics including news, politics, business, technology, sports, entertainment, and lifestyle. She is committed to delivering clear, accurate, and reader-focused reporting that helps audiences stay informed about current events and emerging developments. Andrea’s work emphasizes useful information, balanced coverage, and stories that matter to everyday readers, making complex topics accessible and relevant to a wide audience.