Government moves ahead with five-cent increases in gasoline and diesel four cents – Jornal de Negócios – Portugal

The Portuguese can count on an additional five cents on gasoline and four cents for diesel, materialized Mario Centeno this Friday, January 22, at the press conference presenting the draft state budget for 2016 approved Yesterday the Council of Ministers and will be sent to Brussels.

The purpose of the Executive, explained the minister, is to increase the tax Oil Products (ISP) in order to “restore the Internal Revenue June 2015, which deteriorated as a result of the reduction in oil prices” recorded in recent months. You should therefore ensure fiscal neutrality, that is, an identical recipe although the price of raw materials have downloaded and have done, in this way, lower VAT collected by the state. It remains tax neutrality, but with reflection in the taxpayers pocket. “The q ueda revenue was five cents on gasoline and four diesel, recovery point to the corresponding value updates,” explained the minister.

The Government also has an increase in the tax stamp concerning consumer credit operations, which will have an increase of 50% compared to the rates currently. The goal materialized Mario Centeno, is to catch the household indebtedness, thereby reducing the number of new consumer credit.

Now when it comes to tobacco, is expected a change in the formula for calculating the tax, which will translate also uphill. The impact will be 3% and will focus “on a portion of the tax that is charged and which now also include the VAT,” he said. The increase “has an impact throughout the price chain”, reaching also, of course, the consumer pocket.

In the budget draft, the government, the Executive estimated at 0.21% of GDP in additional revenue the rise of these taxes. Equivalent to about 390 million euros. In contrast, the reduction of personal income tax surcharge will entail a revenue loss of around 430 million euros.