The environmental association has declared this to be a “fair tax measure,” noting that domestic flights “are not necessities like essential food products.”
This proposal arises in the context of the discussion of the State Budget for 2026. ZERO further noted that applying a reduced rate on travel between Lisbon, Porto, Faro, and the Madeira and Azores islands “is an indirect form of fiscal subsidy for fossil fuels.”
If implemented, this measure would allow the state to “generate additional revenue of at least 100 million euros per year,” according to the environmental advocacy group, adding that this amount is “equivalent to the investment in about 1,000 public housing units annually at controlled costs.”
Domestic flights between Lisbon, Porto, and Faro incur a 6% tax, whereas other flights between mainland Portugal and the Azores and Madeira islands are exempt from VAT.
“This situation undermines the principles of social justice, as air travel is mainly used by higher-income segments, while lower-income families pay VAT at the same or higher rates on basic products,” the statement reads.
ZERO additionally pointed out that this proposal does not affect residents and students from the autonomous regions since they are covered by the social mobility subsidy, meaning that the amount paid for travel is fixed by law, regardless of the ticket price set by the airline.
