By Andrea Hargraves 
“Due to the evolution of fuel prices, the government determines the return of additional VAT revenue, through the ISP, resulting in an additional reduction of 2 cents per liter of diesel and 1 cent per liter of gasoline.”
Thus António Costa’s government announced another measure to support the Portuguese. Fuel prices have been rising for weeks in a row, so the executive branch decided to find solutions, something Finance Minister Fernando Medina threatened to do last week. He ended up doing so a few days later. However, this solution is seen as short-term.
“The government intends to achieve the highest possible revenue value, without taking into account the needs of consumers and SMEs.”I enlighten you
The National Association of Fuel Traders (ANAREC), which presented concrete data, stressed that “the indicated values are clearly insufficient to combat the suffocation that Portuguese consumers and companies feel on a daily basis.”
“We consider, fundamentally, that there is room for further reduction in the ISP, as the extraordinary VAT revenue turned out to be much higher. Diesel on roads, in the period from May to September, rose by 0.42 euros per liter, which It translates into an increase in ICA revenue of about €0.10 per litre; in simple gasoline, it increased by €0.27 per litre, resulting in an increase in revenue of about €0.06 per litre.
In conversation with Sabo24The association begins by saying that “the government intends to achieve the highest possible revenue value, without taking into account the needs of consumers and SMEs” by not continuing to reduce taxes, such as carbon taxes and the ISP itself, as previously promised.
The National Renewable Energy Agency even advises Executive Director Antonio Costa to think differently, for example, to reduce the value of fuel to quantities lower than those imposed by the neighboring country and explains why. “If the price of fuel were slightly lower than in Spain, consumption would be reversed: not only would the Portuguese return to the Portuguese market, but the Spaniards themselves would be able to do so.“, they confirm.
“There is scope to reduce the ISP further, as extraordinary VAT revenues have been shown to be much higher.”
With this procedure, another question arises. How will the state treasury benefit from this alternative in light of the low price? “In terms of units per liter, less tax revenue is effectively collected per liter of fuel, but since it will bring in many additional litres, the total tax revenue will be higherThey say, calling on the government to be “transparent and reduce fuel prices accurately.”
Regarding the neighboring country, the National Renewable Energy Agency uses Spain to explain the recent statement issued by the Portuguese government, which stated that fuel consumption in the first half of the year was the highest in the last decade.
“It was because he was powerful It was affected by the consumption of heavy vehicles, which enjoyed the advantages of professional diesel and saw the benefits of refueling reduced in Spain. As a result, they transferred their consumption to the Portuguese side, at the expense of the Spanish side. “However, the Spanish government, noticing the decline in supplies, once again optimized the benefits of heavy vehicles, noticing once again the opposite movement, towards the return of professional fuel supplies to Spain,” explained the National Renewable Energy Agency (ANAREC), which here also applied Another by Antonio Costa.
“We ask our Directorate to pay special attention to the processing of professional diesel, which can generate a very significant income, given the high number of liters,” says the association, which has no doubt that “given the serious economic situation, which Portuguese families and small and medium-sized businesses are experiencing, Careful management of costs is implemented, including fuel. Consumption is limited to necessary and urgent needs, which naturally affects fuel merchants“.