Portugal asks for authorization of the directive that imposes the ISP Observador fee
The Government’s proposal that changes the minimum rate of the ISP in order to include in this tax an equivalence to the rate of VAT in the complementary ones will be applied to a request for derogation from the European directive.
“In parallel with the legislative initiative of the Assembly of the Republic to define the limits set in the CIEC [Código dos Impostos Especiais sobre o Consumo], Portugal submits request for derogation from the European Commission for beneficiary of the European derogation [previstos na diretiva europeia]”, the Secretary of State for Tax Affairs, António Mendonça Mendes, told Lusa.
This request for a derogation will thus make it possible to apply a measure announced by the Government to reflect in the Tax on Petroleum Products (ISP) a reduction equivalent to the derivation of a 10 percentage decrease (from 23% to 13%) of the VAT rate on fuels.
The Government law contemplates that measure, which will be proposed and voted on this Friday in the Assembly of the Republic, for determining the lower limit of the range the determination of the ISP rate applicable to unleaded gasolinein order to guarantee greater flexibility in the adoption of current rates in the context of uncertainty and volatility in the oil products markets.
In light of the Community directive, the minimum rate of the ISP is 33.3 cents per liter of diesel and 35.9 cents for gasoline, with the minimum range of the law in force in each Member State being respectable.
In Portugal, the ISP rate is currently at 46.6 cents per liter of diesel and at 63.1 cents includes gasoline cents, and this value, in addition to the ISP, the carbon tax (the update of which is suspended) and the contribution Supervisor .
Thus, without already making the minimum limit of application (the proposed law contemplated) there can be no margin to lower how to lower the ISP that results from the reduction of other rates of VAT on gasoline of the ISP by one and two cents in the liter of gasoline and , respectively, the weekly mechanism that reduces the ISP the increase in VAT revenue resulting from the rise in prices.
In view of the minimum ISP, without limiting the range of the restriction, it might no longer be possible to project into account the values equivalent to the application of a VAT rate with regard to diesel.
Portugal’s request to Lusa, the Secretary of State for Tax Affairs, is made by the European Commission of the States affiliated to the chosen Member States “in cases of derogations under the article IEC Directive, under article 19 of Directive 2003/96/EC ”.
These der, specified António Mendonça Mendes, will be altered and justified by the exceptionality of the current circumstances.