Tuesday , May 30 2023

Bloco insists on lowering VAT on electricity and gas, but the government does not lean


THE The government intends to apply the reduced VAT rate of 6% to the fixed element of electricity and gas to consumers with lower conventional power, such as households and services (3.45 kVA).

The State Budget proposal for 2019 (OE2019) therefore provides for a legislative authorization for the Government to amend List I annexed to the VAT Code to allow the reduced VAT rate on the fixed element of the electricity and gas supplies corresponding to respectively, at a conventional power not exceeding 3.45 kVA [Kilovoltampere] and the low pressure consumption does not exceed 10,000 m3 [metros cúbicos] annual ".

Speaking about this measure in a joint hearing of the Economic and Environmental Committees, in the context of the special assessment of the OE2019 proposal, today in parliament, block member Jorge Costa argued that "the fact that the government was limited to 3.45 kVA" the reduction "reached two million families. "

"It is a very limited measure and it is wrong to differentiate in these terms," ​​he said.

Therefore, he questioned "if the government is available to make a change for consumers by making those with a contracted power of 6.9 kVA," "used in the country on a larger scale," "they are covered by this discount."

Recalling that the reduction in VAT on electricity is an "old ambition", Jorge Costa pointed out that "it would be desirable" to achieve this year.

In response, the Minister for the Environment and Transitional Energy, João Pedro Matos Fernandes, said that "the government's proposal for VAT is a proposal that already allows a very expressive number of its families [do desconto] can benefit. "

He added that the measure could also "lead each of the families to think if they can not hire a lower power that suits their needs," which is a "good example of energy efficiency."

According to the proposal of AG2019, the new rate – now 23% – will be applied to the correct amount of the fee due for the supply of electricity and natural gas for adhering to the respective networks, while maintaining the normal rate applied to the variable amount paid on a consumption basis.

This measure, which was negotiated between BE and PCP with the government, aims to "reduce the costs associated with energy consumption and protect final consumption" and entails a loss of revenue for the state of some EUR 19 million in 2019, in line with the budget proposal.

This change in the VAT rate must "be subject in advance to the consultation procedure of the VAT Committee", as proposed in the proposal.

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