Government to Propose 6% Construction VAT Cut in Parliament After 2026 Budget Approval

• The government will propose reducing the construction VAT from 23% to 6% in Parliament after the 2026 State Budget is approved.
• Finance Minister Joaquim Miranda Sarmento confirmed the timeline during a parliamentary hearing.
• The Liberal Initiative party questioned the government on the timing and called for further tax reductions to boost housing supply.
• The minister rejected the Liberal Initiative’s proposals, emphasizing the government’s commitment to maintaining budget surpluses.
• Sarmento expressed concerns about full tax exemptions for certain rental properties, preferring to evaluate current incentives first.

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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