Eurico Brilhante Dias also recalled that the PS, in the discussion of the State Budget proposal for 2026 in the specialty, presented a proposal for the additional revenue from the ISP to be channeled towards reducing VAT on essential food goods. This proposal did not pass in Parliament, having been rejected by PSD, CDS-PP, IL and Chega.
“The Government today has more revenue, it increases taxes on fuel not even 48 hours after approval of the State Budget in 2026, and the Assembly of the Republic will not discuss what to do with this revenue and will not allow the PS to present a proposal to lower VAT on food due to a negative coalition for the Portuguese between AD and Chega”said the PS parliamentary leader.
According to PS calculations, the reduction in the ISP discount will allow the Government to raise an additional 250 million euros in revenue.
“Last week what was a central element for us was blocked: that, if there was an increase in the ISP, the Portuguese could have a reduction in VAT. They pay more on fuel, but it was also time to reduce VAT on essential goods. This answer is not possible because there was a negative coalition for the Portuguese between AD and Chega”highlighted Eurico Brilhante Dias.