The Ministry of Finance clarified on Wednesday that there will be a “transitional provision” in the Government’s proposal to change the IUC calendar to avoid the “temporal proximity between those who paid IUC at the end of 2025 and what will be due in 2026.”
“It is premature to announce or speculate on what the final design of this measure will be, but it can be anticipated that the Government’s proposal will include a transitional provision to apply to the IUC due in 2026, avoiding temporal proximity between those who paid the IUC at the end of 2025 and what will be due in 2026,” stated a note sent by the Ministry to the newsrooms.
This clarification from the Ministry of Finance comes on the same day when news emerged that twenty thousand motorists will pay the IUC twice until February, citing sector associations.
However, the Government emphasizes that “it is important to clarify that the Government’s proposal to change the timing of the IUC payment is still in the final stages of drafting.”
“This proposal should be timely approved by the Council of Ministers to be subsequently submitted for discussion and approval by the Assembly of the Republic,” the same note read.
New IUC Rules May Have “Opposite Effect”
From next year, the Single Circulation Tax (IUC) will have new rules, as it will be paid on a single date in February, unlike the current system, where it is paid in the car’s anniversary month. However, this measure may have the “opposite effect” to what the Government intends, come 2026.
The reason for this single date is to help ensure people “do not forget” to pay the tax on time, explained Finance Minister Joaquim Miranda Sarmento last week.
However, “in the first year, it may not achieve this objective or may have the opposite effect because changing a date that many Portuguese are already used to means that there might be forgetfulness due to the change itself,” said tax law jurist and university professor Carolina Silva in a statement to TVI on Tuesday.
The jurist further emphasized that the “change is not yet finalized,” as the Government must “submit a proposal to the Assembly of the Republic, which will decide and approve this change. The Government assures that this will be done once the work related to the State Budget is completed, likely by the end of the month.”
Carolina Silva also warned about the “impact on household budgets” for families with more than one car, “because instead of being able to spread the payment of this tax throughout the year, in the months of the car’s registration, they will see this payment concentrated in February and October.”
From next year, the Single Circulation Tax (IUC) will have new rules. Joaquim Miranda Sarmento has already justified the Executive’s proposed change as a measure of “tax simplification.”
Beatriz Vasconcelos with Lusa | 08:56 – 12/11/2025
[Updated at 18:07]
