The Petroleum Products Tax (ISP) is one of the production taxes established by law. It is applied to gasoline and diesel, but also to other products, oil and power, hydrocarbons and electricity.
The European Commission has allowed Portugal to cut internet service providers below the expected minimum.
ISP: Portugal is authorized to apply reduced prices on diesel and petrol
The European Commission has approved Portugal's request to go beyond minimum limits set by European ISP standards to reduce the fuel tax burden, with final approval expected in the EU later this month, Lusa revealed.
According to the decision of the Community Executive on the Portuguese request, dated August 22nd which Lusa was able to access today, “Portugal is entitled to apply reduced tax rates for diesel and unleaded gasoline used as fuel., below the minimum levels of taxes” stipulated in this directive, The Foundation then proposes that the Council of the European Union endorse such a measure.
The reasoning accompanying the decision states that “the required validity period is until December 31, 2022, i.e. within the maximum permitted period.”
“According to the Portuguese authorities, the aim of this measure is to mitigate the rise in retail fuel prices associated with fuel consumption, resulting from the current geopolitical development and which directly affects both households and companies,” the explanatory text states.
In practice, if implemented, this mandate would allow Portugal to go beyond the lower limit of the ISP rate setting range applicable to unleaded gasoline and diesel, in order to ensure greater flexibility in the adoption of those tax rates, given the current context of uncertainty and volatility in the oil product markets.
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