The Government wants to change the payment schedule for the Single Circulation Tax (IUC) to make it simpler and prevent taxpayers from forgetting to meet the deadline. The proposal was presented by the Minister of Finance, Joaquim Miranda Sarmento, in Parliament, during the hearing on the State Budget for 2026.
The measure is part of the “tax simplification agenda” of Luís Montenegro’s Executive and aims to reduce delays in paying car tax, which each year result in thousands of fines.
According to Miranda Sarmento, the change aims to “improve the way taxes are paid”, ensuring that fewer taxpayers are penalized for lack of memory.
“Many people forget when they bought the car and end up paying late,” said the minister, explaining that the idea is to standardize the calendar and make life easier for those who have to pay the IUC.
Government wants a “more practical” system
Currently, IUC is paid in the month the vehicle is registered, which means that each owner has a different deadline. The change proposed by the Government aims to simplify the process, making it more predictable and avoiding forgetfulness.
Miranda Sarmento stated that this will be a “fiscal simplification measure” and that it does not represent any tax increase. “The objective is just to ensure that people don’t forget to pay and that they avoid fines”, he highlighted.
The proposal will be discussed in the Assembly of the Republic, as changes in tax matters must be approved by deputies.
No increases, guarantees the minister
During the parliamentary hearing, the Minister of Finance also responded to criticisms raised by Chega’s bench, which questioned whether the Government planned to increase the IUC, especially for older vehicles. Miranda Sarmento was categorical: “There is no proposal, neither in the State Budget for 2026, nor in any other initiative, to increase the IUC”.
The only change planned, he stressed, is related to the time of payment of the tax and not its value.
Part of the agenda for tax simplification
This change is one of the 30 measures included in the “agenda for tax simplification”, presented in January 2025. The plan foresees the reduction of bureaucratic procedures, the reinforcement of the Finance portal and the extension of deadlines for correcting errors in declarations.
The Government believes that the change in the IUC will help reduce forgetfulness and make the system more efficient, benefiting both taxpayers and .
“It is a common sense and simplification measure”, concluded Miranda Sarmento in Parliament.
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