Government wants to gradually cancel the ISP discount
The document divides the data by each of the taxes and allows us to know, on the one hand, that VAT once again registers, unsurprisingly, the highest growth in revenue. The proposal points to an increase of 5.1%, in 2026, up to 27,489 million euros.
Another case of indirect tax is the Tax on Petroleum and Energy Products (ISP), which marked part of the press conference at which the Minister of Finance was present, after the document was released. Joaquim Miranda Sarmento made it known that the Government is “working on a solution that allows” to cancel the discount on fuel prices. A “temporary” measure, he recalls, which has been in force since 2022.
The words are in line with the demands made by Brussels. The EU wants Portugal to eliminate that discount, which promotes an increase in demand for fuels – precisely the opposite of what that institution seeks, within the scope of objectives linked to the transition to ‘clean’ energy.
Even so, the change must occur without “increasing the prices of gasoline and diesel”. In practice, the Montenegro executive wants to take advantage of moments when prices are low, to eliminate the discount without consumers feeling the difference in such a significant way. In any case, the OE2026 proposal does not include any measure in this regard, as the change should take place in the “medium term”, said the minister.
The accounts included in the OE2026 proposal point to a 4.6% increase in revenue arising from ISP, up to 4,254 million euros next year (4,067 million predicted for 2025).
On the other hand, in relative terms, the most aggressive increases are those that the Government foresees in Stamp Duty (5.4%, up to 2,458 million euros) and in the Single Circulation Tax (5.7%, up to 602 million).
At the same time, vehicle taxes should result in revenue of 511 million euros (4.6% more) and tobacco consumption taxes reach 1,676 million (4.6% increase). The lightest increase, among the main indirect taxes, comes from the Tax on alcohol, alcoholic beverages and beverages with added sugar or other sweeteners (IABA), which should make it possible to raise 317 million euros (2.5% increase).
The remaining slice of the State’s tax revenue pie with indirect taxes comes from others, with less relevance. These will total, in 2026, 291 million euros (0.8% above the existing estimate for 2025).