Finance Minister warns VAT reduction would lead to deficit

Portugal's Finance Minister, Joaquim Miranda Sarmento, warned that reducing VAT on fuels and proposing zero VAT on the food basket would lead to a budget deficit in the country by 2027. This statement came in response to proposals from the parties Chega and PS, which are calling for changes to the VAT rates in question.

According to government estimates, implementing such measures would have a significant financial impact, quantified at around 2 billion euros annually. This amount would exceed the projected budget balance, as reported by various sources.

Miranda Sarmento emphasized that the approval of proposals involving VAT reduction would require consensus between Chega and PS to be feasible. During his statement, the minister noted that such changes in fiscal policies could result in a derailment of public accounts.

The minister's statements were widely reported by several entities, including RTP, Observador, and Público, which highlighted the government's concerns about budget balance in light of rising costs associated with tax reductions.

The opposition parties, Chega and PS, are the proponents of these tax changes, which, according to Miranda Sarmento, could create serious financial problems for the country if implemented without proper analysis of the fiscal and budgetary consequences.

This topic is current and relevant in public debate, as fiscal management and tax policies are frequent focal points in the political agenda, especially in the context of rising inflationary pressures and the search for economic solutions.