New measures to contain the rise in energy and agri-food prices
In April 2022, the Portuguese government enacted new measures to contain energy and food prices:
- Temporary reduction of the Tax on Petroleum Products (ISP) equivalent to the reduction of VAT from 23% to 13%.
- Suspension of the increase in the carbon tax will be extended until December 31.
- Subsidy to companies suffering from increase in gas costs (30% of the increase in gas price up to EUR 400,000 per company).
- Agricultural sectors: Temporary VAT exemption for fertilizers and feed, and support credit line from treasury.
- Liquidity measure for manufacturers from treasury.
- For vulnerable families: extending the support measures for the price of gas cylinders to minimum social benefits.
These were initially presented on 11th April 2022. The Council of Ministers later approved them through the XXIII State Budget 2022 on 29th April 2022.
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