The extension of VAT by 6% for 3.4 million families, announced today by the President of the Republic, will continue in 2025 and will have budgetary implications of 90 million euros.
The measure, due to come into force in January 2025, is based on a socialist proposal and doubles the share of monthly electricity consumption taking into account the reduced VAT rate and, according to PS, will benefit 3.4 million families.
Domestic electricity consumption (for contractual capacity not exceeding 6.90 kVA) of up to 200 kWh over a period of 30 days is subject to a reduced VAT rate. For larger families (with three or more dependents), the covered consumption increases to 300 kWh over a period of 30 days.
The estimated cost of extending the scope of application of the reduced VAT rate is approximately 90 million euros.
In publishing the diploma, the President of the Republic suggested that there is a financial aspect that affects state revenues, but noted that in the case of VAT on electricity, “such an impact will not occur in the current budget year, but only from January 1, 2025, the exact date of its entry into force,” according to a statement published on the presidential website.
Taking this context into account, “for all the diplomas to be implemented, they must be reflected in the state budget for 2025, and therefore they are not insignificant for participation in the discussion and approval of the budget for next year,” reiterated Marcelo Rebelo de Sousa.
Author: Lusa
Source: CM Jornal
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