In the proposed amendments to the State Budget for 2026 submitted to parliament, the Liberals advocate modifications to the tax offense regime. These changes would reduce the penalty for late submission of documents to the state, such as the periodic VAT declaration, to 25% in cases of negligence and 50% in cases of intent.
Currently, the law stipulates that voluntary payment of a fine results in a reduction to 75% of the assessed amount.
In the project’s rationale, the party explains that while it supports voluntary compliance with tax obligations, the current fines “are out of step with the economic context of Portuguese families, in addition to the endless list of tax and contributory obligations they are subject to.”
“For example, the failure to submit the VAT declaration within the legal deadline, as well as the respective payment outside the legal period, is punishable with a fine ranging from 150 to 3,750 euros, a disproportionate amount for most liberal professionals and businesses in this country, particularly in a nation where the State often fails to comply with the laws and deadlines to which it is subject,” IL emphasizes.
The party argues this is “a true incentive for voluntary payment as quickly as possible and with minimal judicial litigation available.”
To date, for the detailed discussion of the budget, the liberal bench has already submitted 79 amendment proposals, according to information available on the Assembly of the Republic’s website.
The party has also proposed, for 2026, reducing the construction VAT to 6%, viewing it as essential to address the “social emergency” in the housing market.
While the Government plans for this VAT reduction in construction to take effect at the minimum rate by the end of the first quarter of the next year, the Liberal Initiative wants it implemented as early as January 1.
