Chega’s proposal was unanimously approved by the Budget, Finance, and Public Administration Committee (COFAP), with favorable votes from all parliamentary groups present at today’s meeting (Chega, PSD, PS, and Chega).
Chega deputy Patrícia Almeida emphasized the necessity of a comprehensive explanation from the Tax Authority (AT) to both parliament and those most affected by the lack of taxation on dam-related taxes after five years.
PSD deputy Hugo Carneiro agreed with the party on the necessity of the AT’s director-general’s presence.
PS deputy Miguel Costa Matos noted that since this is “a long-standing issue,” a “new accounting process” on the matter is beneficial.
The sale of six hydroelectric power plants in the international Douro by EDP to a French consortium led by Engie for 2.2 billion euros in 2020 sparked public debate over dam taxation.
The sale of the Miranda do Douro, Picote, Bemposta, Baixo Sabor, Feiticeiro, and Tua dams was not subject to Stamp Duty and Municipal Property Transfer Tax (IMT), prompting the Public Prosecutor’s Office to open an investigation, with the AT participating as the criminal police, to examine initial suspicions of tax fraud.
During her parliamentary session on January 8, Helena Borges stated that the tax calculation related to the transaction was “ready to be concluded” and that there were “conditions” to settle the amount “at any moment.”
Beyond this specific sale’s tax issue, the civic group Movimento Cultural da Terra de Miranda (MCTM) has presented legal arguments over the years, suggesting that under current legislation, energy-producing dams—including the six in the Douro and others across the country—are subject to IMI.
The previous government under António Costa instructed the AT to settle the IMI of the plants by the end of 2023 for the preceding four years, applying a 2006 advisory opinion from the Prosecutor General’s Office (PGR), which legally qualifies the assets incorporated in dam concessionaires and results in the constructions and buildings of the dams being considered as real estate for tax purposes.
Regarding the IMI of the six dams sold in the Douro, the director-general stated in January that there was no expiration of the tax for 2019 and 2020.
[Updated at 10:52]
