Tax low fuel 1 cent. Where were the other two? – Express

The good news that Prime Minister António Costa reserved to be disclosed by the Minister of Finance – which is in Germany, in Frankfurt – is that for the first time, a Portuguese government lowers the tax applied to fuels. But the descent announced Thursday it has nothing to do with the expectations that the government created and pointed to a decline of 3 cents per liter. After all, the decline came down to 1 cent.

By the logic previously announced by the Secretary of State for Fiscal Affairs, Rocha Andrade, it was expected that 4.5 per cent rise in base prices fuels would be no possibility of down 1 cent in tax ProdutosPetrolíferos (ISP). As from the beginning of the year, according to accounts made by several Portuguese newspapers, the base price rose about 12 cents, there would be room for the ISP down 3 cents. So, oil companies may question the methodology of the current quarterly oscillating mechanism of this tax. And in this sense, it is legitimate to ask: where were the remaining 2 cents

On 12 February, the Government increased the tax on oil products (ISP) applicable to gasoline and road diesel at 6 cents and made it through 24 a concierge / 2016 instead of including this measure in the state budget, just waiting for appropriate debate and for its approval. This was one of the largest increases ever ISP.

The whole history of this tax has had an evolution in growing over the years and excluding the government of António Guterres, who froze the price of fuel, the ISP It has always be worse. This downward revision represents the first time that this tax is reduced, although it defrauded the expectations created. By the way, is far from offsetting the increase in ISP made on 12 February.

Tax burden has increased every decade

In fact the tax burden on petrol and diesel sold in Portugal has increased every decade. The oil companies themselves were very dubious regarding ISP descents. The president of one of the oil major operating in Portugal even said to Expresso that “only believe after seeing.” – Commenting on the ISP possibility down 3 cents per liter

said the Ministry of Finance “on the basis of this upgrade was the need to compensate for the reduction of VAT charged per liter of fuel, given the fluctuations in the international prices of those products, and also the need to reduce further negative impacts in the environmental area and the volume of caused national imports the increase in consumption, as promoted by the reduction of the sales price to the public “.

” Whereas greater fiscal neutrality of changing prices of petroleum products implies a regular review of the ISP values, offsetting this tax those changes in the VAT, the government decided to re-evaluate the rates of that tax, three months after the last update, as expected, “says a statement of Finance.

Making an analysis to price developments, the Ministry of Finance He says, “in January, the reference prices of petrol and diesel determined by the National Authority for the Fuel Market (TNGC) amounted respectively to 1,118 and 0,861 euros. Three months later – says the statement of Finance – “in April, and excluding the effect of the Order 24-A / 2016, there was an increase in those prices at 0.0465 euros in gasoline and 0.0385 euro diesel”.

Comparing the average reference prices for the month prior to publication of the ordinance, which coincides with the month in which it was first announced increased ISP, with the average reference price of the previous month of this Order, “the Government determines a decrease of 1 cent per liter applicable to unleaded petrol,” the Ministry of Finance. And in the case of diesel fuel, “the variation observed in that period is not sufficient to support the reduction of 1 cent per liter tax neutrality tax”, considers.

Government “offers” 1 cent less diesel

Perhaps not to give said not said, and “given extraordinarily the trend in recent days, the government determines a decrease of 1 cent per liter tax on the diesel “.

this reduction in ISP revenue announced on Thursday, due to the first quarterly ISP review,” tends to be offset by the VAT revenue increase, which stems from the rise in prices fuels, in line with the fiscal neutrality advocated by Order 24-a / 2016 of 11 February, “says the statement of Finance.

said the Ministry of Mário Centeno that” under the law determining the method of attachment of the unit rates amounts of tax on oil and energy products, applicable on the mainland to gasoline and diesel, “the Government shall” to change the unit rates ISP levied on unleaded petrol and the diesel by keeping in force additional to the ISP fees and road service contribution. “

ISP revenue to fall 44 million

Finance state that “these ISP updates represent an estimated decrease of 44 million euros in revenue from this tax in the current year, if no future are variations of the reference prices to return to justify its review, which tends to be offset by revenue increase VAT, which stems from the rise in fuel prices “.

in the oil sector remains the question as to which the reference value of the prices of petroleum products do vary the ISP, given that the current quarterly review is below the expectations created in the market by the previous public statements of the Secretary of State for Fiscal Affairs.

This question has as a starting point a series of meetings held by the Deputy Minister, Eduardo Cabrita with the heads of road transport companies of goods, reacted with strong discontent after the government announced one of the largest ever increases the ISP value.

This quarterly ISP revision does not change the fundamental issue, which is the high cost of fuel in Portugal and the price difference to the values ​​practiced in Spain in the sale of gasoline and diesel fuel, which continues to motivate a shift of Portuguese borderer populations to the Spanish service stations.