After criticism from Brussels, since 2023, the Government will now begin to gradually withdraw the benefit related to the ISP. The Finance Department has ensured that it is working on a solution that does not increase fuel prices.
The Minister of Finance, Joaquim Miranda Sarmento, said this Thursday that the European Commission “has not imposed any date” for the end of the discount on the Tax on Petroleum and Energy Products (ISP), which will be gradual to avoid increasing prices.
“The Commission, for now, no date has been imposedno calendar, but has continued to emphasize that Portugal, among other countries – I believe there are around 10 more – have to reverse these discounts on fuel taxation“, said Joaquim Miranda Sarmento.
Speaking to Portuguese journalists in Brussels at the end of the meeting of EU finance ministers, the government official pointed out that “the end of the ISP discount, the reversal of the ISP discount, will be as gradual as possible.”
“Therefore, We cannot anticipate either gradualism or its end“, said Joaquim Miranda Sarmento.
After criticism from Brussels, since 2023, the Government will now begin to gradually withdraw the benefit related to the ISP.
At issue are discounts on the ISP on the purchase of gasoline and diesel, support created in 2022 and 2023 following the energy crisis related to the war in Ukraine and high inflation.
The Government did not include in the State Budget proposal for 2026 (OE2026) any provision for the elimination of these discounts and has already signaled that the process should be gradual.
The Finance department has already guaranteed that it is working on a solution that does not increase fuel prices, pointing out that will begin to withdraw the benefit in times of price reduction.
This exercise arises due to recommendations from the European Commission to reduce these discounts, as they are exceptional measures that aim to soften the impact of rising fuel prices.
The elimination of the current ISP discount and the updating of the carbon tax would bring additional revenue to the State coffers of 1,132 million euros, estimates the Public Finance Council.
