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Government accounts predict diesel will fall by 17 cents per liter next week and petrol will fall by 13 cents, based on the downward trend in international prices this week. Despite these forecasts, and contrary to the provisions of the “fiscal neutrality” formula approved last week, the Ministry of Finance renounces (for the moment) to recover the loss it will have in VAT with the corresponding increase in the tax on petroleum products.
“Given the uncertain circumstances of the economic development as well as the expectation of coordinated responses at European level – and even if a sharp drop in fuel prices is expected next week – the ISP (Tax on Tax) corresponding will not be updated this petroleum products), maintaining the temporary FAI rebate of 3.4 cents per liter of diesel and 3.7 cents per liter of gasoline”. This reduction includes the first tax reduction approved last year and performed last week.
The decision not to increase the ISP in this context prevents the increase in the oil tax from removing the magnitude of the price drop expected for the next one, which will be the most significant. If the formula for recovering the VAT lost due to the fall in prices were applied, the oil tax would be increased by 2 cents on gasoline and 2.6 cents on diesel. But this loss of tax revenue per liter of fuel is temporary, since the Ministry of Finance indicates that it “will apply the formula again next week with the corresponding adjustments”.
The Ministry of Finance also reaffirms that, in order to give the government leeway in possible measures aimed at mitigating any further rise in fuel prices, a formal request for a reduction in the VAT rate applicable to the sale of fuels has been presented to the European Commission in Brussels, Portugal.
The government recalls that the reinforcement of the return via Autovoucher of expenses at service stations remains in force and reveals that already 2.4 million taxpayers have registered in the month in which the value has increased to 20 euros for the first supply .