- Portugal is considering reversing the reduced 13% VAT rate for restaurants and hospitality.
- Finance Minister Joaquim Miranda Sarmento says the current rate is a costly subsidy that mainly helps higher-income consumers.
- The lower VAT rate is estimated to cost the treasury about €1 billion a year.
- The IMF has also questioned whether reduced VAT for hospitality is still economically justified given sector growth.
- Any tax increase would need parliamentary approval, and the government may not have enough votes.
Source: vatcalc.com
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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