Portugal’s AD government has submitted a bill to parliament seeking to temporarily reduce the ISP fuel tax until June 30.
The bill was submitted to parliament yesterday to mitigate soaring fuel prices triggered by the ongoing war in the Middle East.
The government wants to continue with the ISP discount by returning additional VAT revenue, considering it “appropriate to temporarily and exceptionally reduce the minimum limit of ISP rates, whilst ensuring compliance with the limits established by European legislation”.
Under the proposal, the minimum rates for the ISP on unleaded petrol will fall to €199.89 per 1,000 litres, and those on diesel will fall to €156.66.
Tax rates are established through ministerial orders, which determine the specific amounts to be applied from a set date, provided they fall within a range defined by law.
This provides for a temporary and exceptional amendment to the minimum unit rate limits for the tax on petroleum and energy products (ISP).
The temporary reduction applies when the rise in fuel prices exceeds €0.10 compared to the week of March 2 to 6.
The extraordinary increase in oil prices resulting from the war in the Middle East is having a “social and economic impact” on families and businesses, the government highlights in the memo explaining the initiative.
At this point, the world is still unsure of where the price of oil is going – but it is not looking at all positive.
Source material: LUSA
