National Association of Municipalities will propose to the Government a 5% reduction in VAT on energy

The National Association of Portuguese Municipalities will propose a 5% reduction in the Value Added Tax (VAT) on energy in negotiations with the Government next week, the association’s chairman of the board announced this Saturday.

“We defend the reduction and if there is no reduction, consequently what is fair is that the increase in revenue in the state coffers be reverted in favor of the municipalities in extraordinary measures.”, said Luísa Salgueiro, at the end of the closing session of the National Meeting of Mayors, which took place in Viseu.

Asked about the possible return to the municipalities of their contribution to the Municipal Support Fund (FAM), the president of the National Association of Portuguese Municipalities (ANMP) stressed that this can only result if that mechanism is extinguished, “something that is included in the first Government of Portugal”. António Costa” and the Local Finance Law.

According to the mayor of Matosinhos, before this decision “it is important to decide what to do with the FAM”. “If the conclusion is that the mission is exhausted, naturally the shared money has to be returned to the municipalities”, he underlined.

The matter is part of the ANMP’s claim book and is part of the agenda for next week’s meetings.

The president of the ANMP defended this Saturday extraordinary support measures for municipalities, so that the impact of inflation and increases in the cost of energy do not unbalance municipal accounts.

At the opening session of the National Meeting of Mayors, Luísa Salgueiro said that the impacts caused on the accounts by the increase in inflation and energy costs “are such that they require and recommend that the Government also adopt extraordinary measures for municipalities”.

The mayor of Matosinhos stated that in the State Budget for 2023 the Government “will have to go further to ensure that local authorities are able to fulfill their responsibilities – the old, the traditional and the new – but keeping the accounts in order.”

“It is important, and we will say to the Government, the role of defending people, who put it first is decisive, and companies, but it is also time to deal with municipalities”, underlined the president of ANMP, emphasizing the difficulties that municipalities have the sense to respond to all situations.

Source: Expresso by

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