European Foundation
for the Improvement of
Living and Working Conditions

The tripartite EU agency providing knowledge to assist
in the development of better social, employment and
work-related policies

EU PolicyWatch

Database of national-level policy measures

Eurofound's EU PolicyWatch collates information on the responses of government and social partners to the COVID-19 crisis, the war in Ukraine, rising inflation, as well as gathering examples of company practices aimed at mitigating the social and economic impacts.

Factsheet for measure PT-2022-1/2916 – measures in Portugal

Reduction of Single Tax on Circulation (IUC) for freight transport

Redução do Imposto Único sobre Circulação (IUC) para o transporte de mercadorias

Country Portugal , applies nationwide
Time period Temporary, 01 January 2022 – 31 December 2026
Context COVID-19, War in Ukraine
Type Legislations or other statutory regulations
Category Responses to inflation
– Support for fuel expenses
Author Ana Teixeira - CESIS
Measure added 16 September 2022 (updated 21 September 2022)

Background information

The Portuguese Government has issued a set of measures with the objective to support families, consumers in general, and businesses, amidst the rising prices of fuel and other energy products, as a consequence of the COVID-19 pandemic and the further exponential increase in fuel energy prices as a consequence of the war in Ukraine.

Content of measure

This measure falls within the scope of the specific support provided for the freight transportation sector, and applies specifically to category D vehicles, operating in road transportation of goods for third parties.

This measure stipulates a 50% reduction in the Single Tax on Circulation (IUC) for road transportation of goods for third persons, and is specifically applicable to category D vehicles (freight transportation vehicles). Law 84/2021, of 6 December, changes the rates set in the Single Tax Circulation Code (Law 22-A/2007, of June 29) and extends article 70 of the support measures for road transportation of the Fiscal Benefits Statute (Decree-Law 215/89, of 1 July) until 31 December 2026.

Use of measure

No information to date.

Target groups

Workers Businesses Citizens
Does not apply to workers Sector specific set of companies
Does not apply to citizens

Actors and funding

Actors Funding
National government
National funds

Social partners

Social partners' role in designing the measure and form of involvement:

Trade unions Employers' organisations
Role No involvement No involvement
Form Not applicable Not applicable

Social partners' role in the implementation, monitoring and assessment phase:

  • No involvement
  • Main level of involvement: Sectoral or branch level

Involvement

No involvement of any social partner in the design, implementation, and monitoring of the measure.

Views and reactions

According to the Association of Public Road Freight Transportation (Antram, 4 November 2021), the national association provided to the Minister of Infrastructures with a set of required structural measures included in a claim package, even before the current scenario of the escalation of fuel prices. The measure falls within the scope of those measures. Antram also stated that, although relevant for companies and the transportation sector, these measures will not be sufficient to mitigate the escalation of fuel prices, in the case that the growing trend is maintained.

Sectors and occupations

    • Economic area Sector (NACE level 2)
      H - Transportation And Storage H49 Land transport and transport via pipelines

This case is not occupation-specific.

Sources

Citation

Eurofound (2022), Reduction of Single Tax on Circulation (IUC) for freight transport, measure PT-2022-1/2916 (measures in Portugal), EU PolicyWatch, Dublin, https://static.eurofound.europa.eu/covid19db/cases/PT-2022-1_2916.html

Share

Eurofound publications based on EU PolicyWatch

30 January 2023

 

Measures to lessen the impact of the inflation and energy crisis on citizens

Governments across the EU continue to implement policies to support citizens and businesses in the face of rising food and energy prices caused by the COVID-19 crisis and intensified by the war in Ukraine. As winter approaches, preventing and addressing energy poverty becomes a priority. This article summarises the policy responses as reported in Eurofound’s EU PolicyWatch database from January to September 2022.

Article

12 September 2022

 

First responses to cushion the impact of inflation on citizens

Although the worldwide pandemic situation had already disrupted supply chains and triggered increases in energy and food prices in 2021, the situation deteriorated in 2022 with the Russian invasion of Ukraine.

Article

12 September 2022

 

Policies to support EU companies affected by the war in Ukraine

This article summarises the first policy responses that governments across the EU have started to implement to support companies affected by the rising prices, and those with commercial ties to Ukraine, Russia or Belarus.

5 July 2022

 

Policies to support refugees from Ukraine

This article summarises the first policy responses of EU Member States, including those of the social partners and other civil society actors, enabling refugees to exercise their rights under the Temporary Protection Directive.

Article

Disclaimer: This information has not been subject to the full Eurofound evaluation, editorial and publication process.