The proposed amendment to the State Budget for 2026 (OE2026) has been unanimously approved by the parties voting on the budget initiative, including PSD, CDS-PP, Chega, PS, IL, Livre, PCP, PAN, and BE.
Currently, purchases of tricycles, wheelchairs, with or without motors, and passenger or mixed vehicles for personal use by individuals with disabilities are exempt from VAT.
With the newly validated initiative from IL, the exemption will also cover “public utility entities, non-profit sports societies and federations, private social solidarity institutions, cooperatives, and associations of and for individuals with disabilities.”
In explaining the measure, the liberals argue that it “aims to foster greater social inclusion for people with disabilities, sacrificing a small amount of state tax revenue in favor of a cause with significant social impact.”
“By exempting VAT on adapted vehicles, this measure substantially reduces costs for associations, federations, and institutions that, daily, promote social integration, well-being, and autonomy for people with disabilities,” states IL, claiming that the reduced financial burden may allow entities “to channel their resources into strengthening the services and activities they provide, maximizing positive impact on the communities they serve.”
This was the first proposal from IL approved under the changes to OE2026, occurring on the second day of specialized voting.
The Liberal Initiative also succeeded in approving another proposal that ensures Vehicle Tax (ISV) exemption for adapted vehicles for non-profit sports associations and federations, similar to what already applies to public utility entities, IPSS, and cooperatives for individuals with disabilities.
[News updated at 16:33]
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