The Socialist deputies have inquired about a recent fiscal change impacting solar panels, heat pumps, and air conditioning units, which are now subject to the standard VAT rate of 23%, up from a previously reduced rate of 6%. This change took effect starting Tuesday.
The inquiry directed to the Minister of State and Finance, Joaquim Miranda Sarmento, questions whether the government’s decision not to renew the reduced tax rate was based on recommendations from U-TAX, a unit established to evaluate tax benefits’ effectiveness and relevance. Alternatively, the inquiry asks if the decision was a result of government inaction.
The Socialist Party seeks clarification from the Finance Minister on whether the non-renewal of the reduced tax rate stems from any U-TAX study that recommended such action, and if so, requests that the study be submitted to parliament.
If no U-TAX evaluation was performed, the deputies are interested in understanding if alternative justifications exist for not renewing the reduced VAT rate or if it was purely due to governmental inaction.
Environmental group Zero has criticized the anticipated VAT increase on air conditioning and photovoltaic panels as a significant setback to climate policy, claiming it positions Portugal contrary to EU objectives. The group expressed its deep regret over the lack of a coherent green tax policy in alignment with Portugal’s emission reduction and climate adaptation objectives.
In early June, the Association of Installers of Portugal (AIPOR) called for maintaining the 6% VAT rate for air conditioning units and solar panels, emphasizing its role in supporting decarbonization and energy efficiency efforts.
