The Secretary of State for Fiscal Affairs today highlighted the “permanent nature” of the lowering of VAT on electricity bills decided by the Portuguese Government, when asked about the fiscal measures adopted in Spain.
“In Portugal, we have already taken measures and measures of a permanent nature for some time,” the Deputy Secretary of State and Tax Affairs, António Mendonça Mendes, referred to Lusa, pointing to the reduction to the reduced VAT rate (6% on the mainland) of the fixed component of the bill and the reduction to the intermediate rate of VAT (13%) on monthly consumptions of up to 100 kilowatts/hour.
Government estimates indicate that the drop in VAT from 23% to 13% on monthly consumption up to KWh will translate into savings of 150 million euros for families this year.
Asked about the possibility of Portugal being able to proceed with fiscal measures similar to those approved in Spain to mitigate the increase in electricity prices, the Secretary of State explained that in Portugal “very significant measures were taken from a fiscal point of view to alleviate consumer bills ” and “long before the current context” highlighting its “permanent character”.
The Minister for the Environment has made a statement on this matter, so we will calmly await developments. Now, from a fiscal point of view, I would like to underline that the Portuguese Government has taken permanent and far-reaching measures to lower the VAT rate”, reinforced, on the sidelines of a clarification session on IVAucher, organized by the Certified Accountants Association (OCC).
At the opening of that session, the secretary of state referred to the need to ensure that accountants have all the necessary information to be able to transmit to merchants how they can join IVAucher, helping to streamline the program.
This Tuesday, the Spanish government approved a series of measures to lower the price of electricity, including the reduction from 5.11% to 0.5% of the special tax on electricity, which is charged on the bills of households and businesses .
The measure, which was approved by the Council of Ministers, aims to cushion the impact on electricity bills of the high prices achieved in the wholesale electricity market, currently at historic highs, due to the increase in gas and carbon dioxide (CO2) rights .