- Portugal collected an extra €925.8 million in VAT from March to July versus the same period last year, a 9.7% increase.
- The rise was stronger than forecast in the 2026 State Budget, with nearly half of the gain coming from unanticipated revenue.
- Economists attribute the VAT increase mainly to stronger consumer spending, economic growth, and inflation; higher fuel prices also contributed.
- The additional VAT revenue could offset the estimated €800 million cost of the government’s pension bonus and further personal income tax (IRS) cuts.
Source: theportugalnews.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.
