HomeEconomyDECO PROteste insists on reducing VAT on electricity "on...

DECO PROteste insists on reducing VAT on electricity “on the entire bill and for all consumers”

DECO PROteste on Wednesday considered the extension of VAT on electricity to 6% for more families, approved in June, insufficient and insisted that this rate should be applied to electricity and gas for all consumers.

Reduction of VAT on electricity. The PS has so far attacked the proposal of a measure (which was approved) that only comes into force in 2025 and which it rejected when it was in government.

Although positive and in the direction that DECO PROteste advocates, it is a timid step that does not solve the problem. Injustice and inconsistency of energy prices in Portugal.“the consumer protection organization said in a statement.

In June, Parliament approved the PS project to extend the scope of the reduced 6% VAT rate on electricity to the first 200 kilowatt hours (kWh) of electricity consumed each month, doubling the current 100 kWh, and, in the case of large families, doubling it from the current 150 kWh to 300 kWh per month.

As comes into force in 2025It allows the scope of this reduced VAT rate to be extended from 300,000 to more than three million families, at an estimated cost of around 90 millions of euros.

DECO Proteste considered this Tuesday that “it is another attempt to solve a broader problem” and maintained “that the reduction of VAT on electricity and gas (natural, piped and bottled) to 6% should be implemented in the entire bill and for all consumers“.

Thus, the association has already sent a message to the Government and the parliamentary groups. open letter giving an account of its position, “in which it proposes several measures that will allow for the acceleration of the adoption of truly sustainable measures for the environment, the economy and families.”

The association recalled that the VAT rate on electricity and natural gas went from minimum (6%) to maximum (23%) in 2011with the intervention of the troika, and that, in 2018, 86,000 consumers signed an open letter delivered to Parliament, demanding a reduced VAT rate on electricity and gas.

Since then, and especially after the stabilization of public accounts, Successive measures have been approved to reduce household energy bills, but for a large part of the population, these essential public services continue to be taxed at the maximum rate for a large part of the bill,” the association stressed.

Source: Observadora

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