Amid the ongoing conflict in the Middle East and with fuel prices still above pre-conflict levels, the Portuguese Parliament rejected all proposals to ease the burden on families through VAT reductions.
What was rejected
On Friday, April 11, the Assembly of the Republic voted against a package of measures to mitigate the impact of rising prices on families. The proposals included the return of zero VAT on food and a reduction of VAT on fuel and gas cylinders.
PS Proposal
23% → 13%
VAT on fuel and gas cylinders
Other parties
Zero VAT
Return of food exemption
Next week
-5.5 cents
Expected diesel drop; -3 cents for petrol
Who proposed and who rejected
In favour: PS, Chega, Livre, PCP, Bloco de Esquerda, PAN
Against (rejected): AD, Iniciativa Liberal
The PS position
"I regret that right-wing parties are contributing to the State collecting more revenue than what effectively results from the impact of war on the cost of living. It is immoral for the State to collect more revenue at the expense of the sacrifices of the Portuguese people."
José Luís Carneiro, leader of the Socialist Party
The socialist leader accused AD, Iniciativa Liberal and Chega of protecting tax revenue he considers illegitimate in the current war context.
The context: war, oil and prices
The Middle East conflict pushed fuel prices up, and even with the ceasefire underway and US-Iran negotiations progressing, prices have not yet returned to pre-war levels. The Government maintains the ISP discount, acknowledging that next week's expected reduction is insufficient.
Consumers are clear: a 5.5 cent drop in diesel is not enough. The pressure on the cost of living remains high.
What is happening in Spain
Across the border, Pedro Sánchez's Government has already applied a reduced VAT rate on fuel - a measure that earned Madrid a warning from Brussels. The European Commission considers the measure violates EU internal market rules, creating an uncomfortable precedent for those defending similar measures in Portugal.
Source: RTP, April 11, 2026. This article is informational and does not represent Grupo Your's editorial position on any party or political force.
