Economy
The government drastically cuts fuel tax
The news about the fuel did not make the Portuguese happy. Rising prices are worrisome, especially when you know that 60% of the cost is going to taxes.
To compensate for the rise in oil prices, the government will cut fuel taxes and will constantly monitor the dynamics of prices. The measure will be valid until January 31.
Secretary of State for Financial Affairs António Mendonça Mendes, in a statement made in Lisbon, said that ...
The government has decided to reinstate the refund model for tax revenues generated from the price of fuel.
The secretary added that “this means that, given the increase in the average selling price of fuel to the population, the state collects a cost higher than 90 million euros VAT, and this amount will be reflected in the reduction in the tax rate on petroleum products. "
The Secretary of State recalled that “this mechanism was already in use in 2016, when prices were very low and the number of Internet providers was increased to compensate for the drop in VAT revenues. Now we are using the same mechanism to do the opposite. "
“Since we have more VAT revenue than expected, we will fully refund this VAT revenue to consumers by temporarily lowering the specific ISP rate for gasoline and diesel fuel in the appropriate proportion,” he said.
Stressing that “the government is following oil price developments very closely,” Mendonça Mendes recalled that the Minister for the Environment and Climate “was still talking recently about measures taken to reduce its impact on the electricity bill” and “ERSE announced its tariff a proposal that already reflects government action. "
He also mentioned that the Minister of Infrastructure and Housing "has already scheduled a meeting with ANTRAM to conduct this monitoring, and we will take the necessary measures."
Since “the excess VAT is fully reimbursed to consumers by reducing the rate of the Internet provider,” “operators must now reflect it in the selling price for the population,” he concluded.
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