“At present, the Commission has not set any date or schedule, but continues to emphasize that Portugal, among other countries – I believe there are about 10 more – must reverse these discounts on fuel taxation,” stated Joaquim Miranda Sarmento.
Speaking to Portuguese journalists in Brussels after the EU finance ministers’ meeting, the official noted, “The end of the ISP discount, its reversal, will be as gradual as possible.”
“Therefore, we cannot anticipate either the gradualism or its end,” added Joaquim Miranda Sarmento.
Following criticism from Brussels, beginning in 2023, the Government will now start gradually phasing out the ISP benefit.
The concern involves discounts on the ISP when purchasing gasoline and diesel, supports created in 2022 and 2023 due to the energy crisis related to the war in Ukraine and high inflation.
The Government did not include any forecast for the elimination of these discounts in the proposed State Budget for 2026 (OE2026) and has already indicated that the process should be gradual.
The Finance Ministry has assured it is working on a solution that will not increase fuel prices, stating it will start phasing out the benefit during periods of price reductions.
This measure is in response to recommendations from the European Commission to reduce these discounts, as they were exceptional measures aimed at easing the impact of rising fuel prices.
The elimination of the current ISP discount and the update of the carbon tax would bring an additional revenue of 1,132 million euros to the State coffers, estimates the Portuguese Public Finance Council.
