EU Rejects Fuel VAT Cuts but Permits ISP Tax Reductions (eco.sapo.pt)

• EU denies authorization for fuel VAT reductions
• Extraordinary ISP reductions permitted below EU minimums
• Portugal has not requested an exemption yet

"The European Commission has definitively ruled out reducing VAT on fuels as a policy measure, contrary to the Spanish approach. Instead, Brussels will allow member states to implement extraordinary reductions in the Tax on Petroleum and Energy Products (ISP) even below the minimum levels mandated by EU directives. The Portuguese government has not yet formally requested authorization to breach these minimum thresholds."