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Government maintains “unchanged” tax cuts to mitigate price hikes – Executive Summary

Government maintains “unchanged” tax cuts to mitigate price hikes – Executive Summary

On Friday, the Ministry of Finance announced the continuation of reducing taxes on fuel, in addition to some other measures that have been in force so far to mitigate the rise in diesel and gasoline prices.

“The government keeps the tax cut unchanged,” in light of the higher prices achieved in August, according to a statement that the applicable internet service provider discount remained unchanged, which means a discount of 13.1 cents per liter for diesel and 15.3 cents per liter for petrol. .

In addition, due to the development of fuel prices during the month of August,
The government keeps the partial suspension of adding rate update unchanged
carbon dioxide emissions (carbon tax), therefore – taking into account all applicable measures –
Reduction in applicable taxes remains at 23 cents per liter for diesel and 25 cents per liter
cents per liter of petrol,” referring to the executive branch in the same memo.

The ISP discount applied to agricultural diesel, which is 6 cents per litre, will also be maintained.

Given the environmental goals of fuel taxation and standard levels of taxation
Consumption recorded, the government will continue to regularly assess the evolution of the fuel market, within the framework of the gradual convergence of the tax weight on
fuel in Portugal is the average of the eurozone “, continues the Ministry of Finance in a statement.

The government warns that the value of the deduction on the tax burden (from the Internet service provider + VAT) should be included, “updated, as a mandatory indication, duly specified in the relevant invoices or equivalent document”.

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From the beginning of the year until the end of July, fuel consumption reached a record level in the past decade, with a 10% rise in the seventh month, compared to the same month in the previous year.

“In addition, taxes on fuel in Portugal are lower than the weighted average for the eurozone: 6% on diesel and 4% on petrol (based on data from the European Commission’s weekly oil bulletin),” the government justifies.