According to a statement released today by the Ministry of Finance, “Given the prospect of price changes next week and price changes observed over the past two weeks, there will be a further reduction in ISP rates. [Imposto Sobre os Produtos Petrolíferos] on both fuels starting next Monday, 20 June.”
Thus, he pointed out, “the tax burden (COI + VAT) is reduced by an additional 1.2 cents per liter of gasoline and an additional 0.4 cents per liter of diesel fuel.”
In the same communiqué, the Treasury states that “Over the next week, global relief of the fuel tax burden through two ongoing measures — a weekly COI review mechanism and a reduction in unit rates of this tax to the equivalent of a VAT rate of 13% — in the amount of 22.2 cents per liter diesel fuel and 26.3 cents per liter of gasoline”, with “to these amounts added a non-renewal of the carbon tax of about six cents per liter.”
According to the government, “the ISP factor for diesel fuel drops to the minimum allowed by Directive 2003/96/EC of 27 October”, adding that “Portugal had already requested the European Commission in April to lift the application of the minimum limits set by the aforementioned Directive in accordance with its Article 19, and the request is currently being evaluated by the services of the European Commission.”
The Guardianship also said that “As part of a weekly review of the ISP’s renewal mechanism, which ensures the return of any emergency VAT revenues subject to the prospect of price changes, the situation will be reassessed next Friday, June 24th.”
