The government will review the current law on the Subsoil Occupation Tax (TOS), which determines that it is paid by gas distributors but many continue to charge consumers, in order to “guarantee proportionality in application”.
In a statement released today, the Ministry of the Environment and Energy (MAEn) considers it “essential to review” the changes introduced with the approval of the 2017 State Budget, which it believes “generated distortions that penalize consumers, companies and municipalities”.
This tax was created in 2006 and was initially charged by municipalities to natural gas distributors for the use and exploitation of assets in the municipal public and private domain, such as underground gas networks.
However, since 2008, gas distributors have been allowed to pass on this cost to consumers via the natural gas bill.
Subsequently, the law that approved the State Budget for 2017 stipulated that “the municipal right of way fee and the municipal subsoil occupation fee are paid by the infrastructure operating companies and cannot be reflected in the consumer’s bill”.
In order to ensure implementation, “previous governments should have made legislative changes to operationalize the provisions of the law, ensuring that no inequities were generated,” which was not done, says the current government.
“For seven years, the problem remained unresolved, resulting in an increase in complaints and litigation between the agents involved in the process,” the Environment Ministry said in a statement released today.
The TOS legal regime “will be reviewed to ensure due proportionality in its application”, the ministry announced, adding that it is evaluating the matter, “considering the perspectives of consumers, municipalities and infrastructure operators, and also taking into account the position of the regulator (ERSE) and the court rulings that have been handed down”.
In 2023, the Supreme Administrative Court ruled that the levy was illegal, based on a rule in the 2017 State Budget, but the measure remains unenforced and the levy continues to be charged.
Some municipalities raised the rate again in January this year, with Barreiro, Cartaxo, Évora, Cascais and Arruda dos Vinhos charging the highest amount, according to ERSE data consulted by Lusa.
DECO PROteste recently pointed out “incomprehensible discrepancies”, giving the most obvious example of Barreiro where, in a scenario of monthly consumption of 200 kWh (equivalent to 17 cubic meters/month), consumers’ monthly bill is increased by 10.64 euros, compared to 1.14 euros in the neighboring municipality of Palmela, or 2.77 euros in the municipality of Seixal, in the same region.
Some municipalities, such as Figueira da Foz and Barcelos, do not currently charge a subsoil occupation tax, while Esposende has a negative rate.
During the debate on the proposed State Budget for 2024, the PS rejected a proposed addition by the PCP which would have determined that the subsoil occupation tax (TOS) should not be passed on to natural gas consumers, as is currently the case. The proposal was rejected by the PS and the Liberal Initiative and the PSD abstained.
