“At the end of this month, a subsidy of 20 euros will end for each of the families through the Autovoucher, which allowed families to subsidise the increase in fuel prices. What we will do now is replace this subsidization measure with a more aggressive measure in terms of lowering taxes”, said Mendonça Mendes, at a press conference of the Council of Ministers.
This measure will be replaced, “in principle, from the month of May”, by a reduction of the ISP (Tax on Petroleum Products), as the Government has not yet received the green light from the European Commission to lower the VAT rate.
“Since we still don't have the green light from Brussels in relation to lowering the VAT rate, what we are going to do is ensure that the Portuguese, when they go to the gas station, will pay the fuel in their final bill as if they had a tax on gas of 13% and not as if it had a VAT rate of 23%, through a corresponding reduction in the ISP rate”, explained the official.
According to Mendonça Mendes, this mechanism, which had already been announced by the Prime Minister at the end of last week, will continue along with the weekly review of the ISP price in light of changes in the price of oil and the increase in VAT revenue.