Luís Montenegro rejected the VAT reduction, assuring that the State is not gaining any revenue increase due to the rise in fuel prices. He clarified that the amount corresponding to the VAT increase is being returned through a discount on the ISP, when applied to the final price rate.
The Prime Minister highlighted that the total value of the ISP discount this year already anticipates around 700 million euros, and reminded Portuguese citizens that they can check the discount and the revenue collected by the State on the fuel bill. Furthermore, he provided information about colored diesel, stating that he is finalizing a proposal that restores extraordinary support valid until last June.
In Nelas, during a visit to the Dão Wine Fair, Montenegro guaranteed that the situation is being monitored. He expressed deep regret that the international oil market has not yet found stability, pointing out that no one benefits from the prolongation of the conflict in the Middle East, the issues of navigability in the Strait of Hormuz, and the instability generated in the markets.
Recognizing the major impact, the head of government stated that they are working with families and businesses to mitigate this situation, taking the opportunity to praise the country's efforts to reduce the tax burden on labor and business income. An increase of 11.5 cents per liter for gasoline and 13.5 cents per liter for diesel is foreseen.
Montenegro mentioned other fiscal policy initiatives, such as targeted support for different sectors of activity and increased support from the Solidarity Can for gas. He considered that this set of actions should be added to four reductions in IRS, two reductions in IRC, and IMT exemptions on real estate purchases by young people.
Appeal to the Portuguese
The Prime Minister called on the Portuguese to evaluate this entire plan and understand the significant effort the State is making. He added that if there is a continuous increase in fuel prices, as occurred in the last four weeks, the government is prepared to deal with this evolution by adopting the measures it deems most appropriate.
Since the beginning of the conflict involving the United States, Israel, and Iran, diesel has already increased by approximately 36 cents per liter, and gasoline has increased by 25 cents. This increase is borne by the Portuguese since the start of the military incursion into the Strait of Hormuz at the end of February. A 50-liter tank of diesel will cost more than 106 euros and a gasoline tank more than 105 euros next week, both already considering the ISP discount announced by the government today. The maximum value was recorded last April for diesel and in 2022 for gasoline.