“The Government respects all court decisions” and “will carefully analyze the grounds and implications of ruling no. 477/2025 of the Constitutional Court, which declared the Additional Solidarity Levy on the Banking Sector (ASSB) for the first half of 2020 unconstitutional,” stated the ministry led by Miranda Sarmento in response to an inquiry about whether the State will refund the amount paid by banks during that period.
In a ruling dated June 3, reviewed today, the Constitutional Court declared the additional solidarity levy on the banking sector, pertaining to the tax calculation for the first half of 2020, unconstitutional on grounds of violating the principle prohibiting the retroactivity of taxes.
The measure in question is the additional tax created in July 2020 in response to the COVID-19 crisis, intended to fund Social Security.
The Ministry of Finance did not provide an answer regarding the amount to be refunded.
The Portuguese Banking Association (APB) was contacted for clarification on whether the State will have to refund banks for payments made in the first half of 2020.
The association responded that it is up to each bank to decide their course of action following the Constitutional Court’s decision.
“The Court’s decision indicates the tax was improper due to its unconstitutionality. The practical consequences require legal analysis, which the APB does not possess, and each bank will likely need to conduct,” stated an official source.
Regarding the amount charged in the first half of 2020, the APB mentioned that the total additional amount paid in 2020 was 28.75 million euros, yet no specific information regarding the first semester’s portion is available.
The levy has been contested over the years by the banking sector, and despite three unconstitutionality rulings last year by the Constitutional Court concerning this measure, they were specific to individual legal cases and lacked binding force.
However, with three rulings on the same matter, the Public Prosecutor with the Constitutional Court has the power to seek a general declaration of unconstitutionality, which was done.
Subsequently, on Tuesday, with only one dissenting vote from Judge António José da Ascensão Ramos, the plenary decided that the levy is unconstitutional due to its retroactive effect.
