When it comes to revenue allocation, indirect taxes are a great ally of Governments. VAT, taxes (the famous ISP), automobile (IA), tobacco (IT), are all taxes that are diluted in the final price of goods and allow the State to collect them without most consumers realizing how much they weigh on the bill Final. In addition to being ‘anesthetics’, precisely because they are hardly available for them, these taxes have another advantage: they are simple and easy to administer, with merchants and service providers being obliged to act as collectors.
The ISP case is one of the exceptions. Whenever there is a rise in price prices, it comes to the fore that Portugal charges a lot of taxes on fuels. The comparison is above all expressive when we look at Spain (where they are low) but we also stand out against the European average. When we fill a tank with gasoline, 58% of the final price is taxed, and when we fill it with diesel, 53% goes to the State. We are among the European countries that are most taxing (see graphs). However, neither is the burden of taxes on taxes a recent phenomenon nor is it unique.
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