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The government will not submit a proposal to amend the value-added tax on electricity - Economy

The government will not submit a proposal to amend the value-added tax on electricity – Economy

The position of the Ministry of Environment, in a statement sent to Lusa, comes on the day when the Minister of Environment and Energy Transition, in an interview with TSF and Dinheiro Vivo, argued that the value-added tax on electricity is a “normal” issue, in the state budget, noting that this The tax has been reduced to approximately 85% of domestic contracts.

“With regard to the state budget, the ‘ceiling’ under which the VAT may be under can be discussed at a reduced rate or may not change,” said Joao Pedro Matos Fernandez, in an interview with TSF and Dinheiro Vivo, published today.

This afternoon, in a note to Lusa, the ministry led by Matos Fernández stated that “to avoid any doubt about the statements of the Minister of Environment and Climate Action, in the TSF / Dinheiro Vivo interview, issued and published today, October 2, it is hereby informed that no proposal will be made.” To change the value-added tax on electricity in the upcoming state budget, as it is not justified.”

“In fact, the VAT reduction already stipulated benefits a very large number of families. On the other hand, as was announced on September 21, the measures to contain electricity prices for the coming year are broad and will accommodate the price fluctuations recorded in the wholesale market,” the ministry adds. .

On September 21, the Minister of Environment confirmed that there would be no increase in the price of electricity for domestic consumers in the regulated market in 2022 and that there would be a reduction of at least 30% in the tariff for access to networks for industrialists. .

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“We are in a position to say that there will be no increase in the price of electricity for domestic consumers in the 2022 regulated market and that there will be a reduction of at least 30% in the tariff for access to grids for industrial customers,” declared the then Minister of Environment and Climate Action, Joao Pedro Matos Fernandez, at a press conference at his ministry in Lisbon.

The government official also stressed that if the unregulated market, next year, will have higher tariffs than the regulated market.” [dos consumidores de um mercado para o outro] It’s just an instant phone call.”

On Friday, a rise of 1.05 euros per month, on average, took effect for the majority of electricity consumers in the regulated market.