ISV and road tax 0.9% more expensive next year

ISV and road tax 0.9% more expensive next year

The Government wants to increase the Vehicle Tax (ISV) and the Single Circulation Tax (IUC) next year, updating them to the inflation rate, which is 0.9%, according to the proposed State Budget.

“The general ISV rates will be updated to the inflation rate in 2022”, which is 0.9%, reads the document delivered to parliament on Monday. António Costa’s executive predicts, with this measure, that ISV revenue will recover in 2022, increasing 29 million euros compared to 2021 (+6%), totaling 481 million euros.

Also, the IUC rates will be updated in 2022 at the rate of inflation, and revenue is expected to increase by 13 million euros (+3%), when compared to 2021, to a total of 409.9 million euros.

On Monday night, the Government delivered to the Assembly of the Republic the proposed State Budget for 2022 (OE22), which forecasts that the Portuguese economy will grow 4.8% in 2021 and 5.5% in 2022. In the document, the executive estimates that the deficit of national public accounts should be 4.3% of the Gross Domestic Product (GDP) in 2021 and fall to 3.2% in 2022, also predicting that the Portuguese unemployment rate will fall to 6.5% next year, “reaching the lowest value since 2003”.

Public debt is expected to reach 122.8% of GDP in 2022, compared to an estimate of 126.9% for this year. The first parliamentary debate process of OE2022 will take place between October 22nd and 27th, the day on which the general vote will be taken.

The final global vote is scheduled for November 25, at the Portuguese Parliament in Lisbon. Finance Minister João Leão presents the budget proposal today, at 9:00 am, at a press conference in Lisbon.