Government denies tightening of rates ISV

Portuguese government said today in the Council of Ministers that there has been any kind of deterioration with respect to rates of vehicle tax (ISV), according to reports given by Diário Económico.

Portuguese government said today in the Council of Ministers that there has been any kind of deterioration with respect to rates of vehicle tax (ISV), according to reports given by Diário Económico.

According to the same source, Carlos Lobo, Secretary of State for Fiscal Affairs, responded to accusations of ACAP saying that the planned increases in the State Budget for 2009 were already covered by the reform of car tax, so there is no worsening of 11% of ISV in 2009.

Also according to the same source, Carlos Lobo said that the percentage of increase in ISV will depend on the amount of pollution emitted by car. In the case of the Single Tax Movement (IUC), Carlos Lobo said that the aggravation of this tax was part of the prerequisite for reform of taxation, whereby there would be a reduction of ISV, relieving the consumer when buying a car, shifting the burden to movement.

Source: Diário Económico

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