The government announced a reduction in discounts for individual entrepreneurs due to falling fuel prices
The government will lower provider discount from this Tuesday. A measure taken as a result of falling fuel prices that reduced the tax to 28.3 cents per liter of diesel fuel and 26.2 cents per liter of gasoline.
In the end, this reduction in discount results in an increase of about 0.1 cents per liter of diesel fuel and about 5 cents per liter of gasoline for the end consumer.
While this price increase is not unexpected, Antonio Comprido, general secretary of the Portuguese Association of Petroleum Companies (APETRO), told CNN Portugal that this is a “reduction in decline” that is due to falling fuel prices, especially gasoline. .
However, the government’s rebate mechanism assumes that falling fuel prices result in an increase in the Petroleum Product Tax (NPT) due to the fall in VAT revenues.
The final fuel price is determined by the operators,” recalls Antonio Comprido: “The market is free, in any case the practice is that, as a tax on consumption, this upward adjustment is immediately reflected in the price for the consumer. “.
The Treasury Department announced on Tuesday that the ISP discount will decrease this month by 0.1 cents per liter of diesel fuel and 4.4 cents per liter of gasoline.
The ISP’s rebate, equivalent to a 13 percent VAT rate cut, was due to last until September 4, but was then extended through the end of the year as part of a state aid package for families due to price hikes. In addition, “the renewal of the carbon tax will be suspended until the end of the year,” he recalled.
According to the agency, “the ISP discount applicable to non-ferrous and labeled diesel fuels for primary sector applications (agriculture, aquaculture and fisheries)” will remain “unchanged at 6 cents per liter until the end of the year.”
