Government proposes new law to lower construction VAT to boost housing supply for middle class

• Government presents new proposal to lower VAT on construction to Parliament
• Finance Ministry preparing new law proposal after rejection in State Budget
• Aim is to decrease VAT and increase housing supply for middle class
• Proposal to reduce VAT from 23% to 6% for construction to be debated in Parliament
• Opposition rejected previous proposal in Budget for 2025
• Municipalities request 6% VAT for construction in rehabilitation areas
• Proposal aimed to authorize legislation on reduced VAT for construction projects
• Limits on VAT reduction for housing construction to be determined
• Focus on affordable housing for middle class
• Government open to dialogue in parliamentary context
• Proposal designed to increase housing supply for middle class
• Legal formulation being worked on to achieve objective of more housing for middle class

Source: jornaldenegocios.pt

Note that this post was (partially) written with the help of AI. It is always useful to review the original source material, and where needed to obtain (local) advice from a specialist.

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