Cheaper fuels on Monday. Petrol and diesel at a discount of about 15 cents – News

“From Monday, the fuel tax burden will take into account this reduction for the ISP (and the corresponding VAT effect), which will mean an additional tax reduction of 14.2 cents per liter and 15 cents per liter of diesel. 5 per liter of petrol, ”the Ministry of Finance says in a statement.

To this reduction, which is due to a new measure reflecting the application by the ISP of a 13% VAT rate on fuel, is added a weekly mechanism that reduces the tax on petroleum products (ISP) from VAT revenue. as a result of rising fuel prices.

As a result, the reduction of 4.7 cents per liter of diesel and 3.7 cents per liter of petrol will be maintained next week due to the weekly compensation scheme launched in March.

The Ministry of Finance points out that the ISP will continue to be reviewed on a weekly basis to ensure that any additional VAT revenue is reimbursed through the ISP, “the mechanism is now being adapted to reduce the tax burden. Completed on 2 May”.

“The two measures – lowering the unit prices of ISPs to the level of 13% and a weekly review mechanism for this tax – are cumulative,” says a ministry headed by Fernando Medina.

Thus, “taking into account the two effects, the Portuguese will benefit from a reduction of 20 cents per liter in the tax burden on diesel and petrol from Monday”.

The Ministry of Finance adds that the value of the reduction in the tax burden now implemented for May will be “revised for June” in order to further replicate the effect of the reduction in the VAT rate. 23-13%, taking into account updated prices.

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