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Factsheet for measure PT-2022-1/3062 – measures in Portugal

Extraordinary support scheme for costs incurred in agricultural production

Regime extraordinário de apoio a encargos suportados na produção agrícola

Country Portugal , applies nationwide
Time period Temporary, 01 January 2022 – 31 December 2023
Context War in Ukraine
Type Legislations or other statutory regulations
Category N/A
– Support for other basic items (e.g., food, housing, public transport, medicines)
Author Heloísa Perista (CESIS)
Measure added 16 February 2023 (updated 25 April 2023)

Background information

The current geopolitical and economic context requires policies that respond to economic disruption and the effects of rising energy costs and mitigate the effects of inflation.

Thus the State Budget for 2023 (Law 24-D/2022 of 30 December) establishes an extraordinary extraordinary support scheme for costs incurred in agricultural production.

The measure was discussed under the scope of the Medium-Term Agreement for Improving Income, Wages and Competitiveness .

Content of measure

Article 232 of Law 24-D/2022 of 30 December (State Budget for 2023) defines an extraordinary support scheme for costs incurred in agricultural production:

For the purposes of determining the taxable profit, for tax periods beginning in 2022 and 2023, of resident corporate income tax (IRC) taxpayers whose main business is of a commercial, industrial or agricultural nature, non-resident IRC taxpayers with a permanent establishment and IRS taxpayers with organised accounts (category B), an increase of 40% may be applied to expenses and losses incurred or borne by the taxpayer regarding the acquisition of the following goods, when used in agricultural production activities:

  • Fertilisers, organic and mineral fertilisers and correctives;
  • Flours, cereals and seeds, including mixtures, residues and waste from food industries, and any other products suitable for the feeding of livestock, poultry and other animals, referred to in the Codex Alimentarius, irrespective of breed and living functionality, intended for human consumption;
  • Water for irrigation;
  • Glass bottles.

The increase referred to in the preceding paragraph shall apply to the tax period beginning on or after 1 January 2022.

The tax benefit provided for in the preceding numbers is subject to the de minimis aid rules.

Use of measure

No information is available on the use of measure.

Target groups

Workers Businesses Citizens
Does not apply to workers Other businesses
Does not apply to citizens

Actors and funding

Actors Funding
National government
Social partners jointly
No special funding required

Social partners

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

Trade unions Employers' organisations
Role Agreed (outcome) incl. social partner initiative Agreed (outcome) incl. social partner initiative
Form Consultation through tripartite or bipartite social dialogue bodies Consultation through tripartite or bipartite social dialogue bodies

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

  • Social partners jointly
  • Main level of involvement: Peak or cross-sectoral level


The measure was discussed under the scope of the Medium-Term Agreement for improving Income, Wages and Competitiveness.

Social partners´ involvement took place in the context of the tripartite Permanent Commission of Social Concertation (CPCS), which includes: government representatives; representatives of employer confederations, i.e., the Entrepreneurial Confederation of Portugal (CIP), the Confederation of Commerce and Services of Portugal (CCP), the Confederation of Farmers of Portugal (CAP), and the Confederation of Portuguese Tourism (CTP); and the representatives of trade union confederations, i.e., the General Confederation of Portuguese Workers (CGTP-IN) and the General Union of Workers (UGT). Their involvement was requested by institutional setting by the initiative of the government. CGTP-IN, the largest trade union confederation did not sign the tripartite agreement, but participated in its discussion at the CPCS rounds.

The agreement shall be compulsorily subject to regular evaluation and appropriate readjustment by its signatories at the CPCS:

  1. During its validity, annually, at the time of the parliamentary presentation of the State Budget Proposal (taking into account not only the framework and solutions contained therein, but also the framework and guidelines of the Stability Programme);
  2. Whenever there is a substantial change in the underlying economic and social conditions.

Later, the employer and trade union confederations were involved in the discussion and the drafting of the Opinion of the Economic and Social Council on the Draft State Budget for 2023.

Views and reactions

According to the Opinion of the Economic and Social Council (Conselho Económico e Social – CES) on the Draft State Budget for 2023, the government has adopted a cautious stance. The CES points out, however, that excessive budgetary prudence will have obvious repercussions in terms of the availability of internal support for the different economic agents to deal with the most serious consequences of the crisis and also in terms of greater investment in stimulating the transformations that the country needs.

The CES notes that the State Budget proposal incorporates the commitments made in the recent Medium-Term Agreement for the Improvement of Income, Wages and Competitiveness, signed by the four employer confederations and the UGT, with effects in areas such as taxation, and which have a direct or indirect impact on the income enhancement objectives, of mitigating price increases or the reduction of context costs and the creation of a more favourable environment for competitiveness, which may contribute to greater efficiency in government action and in mitigating the impact of the deterioration of the economic situation on families and companies.

The measures foreseen in the framework of the energy and climate transition are part of the government's commitment to achieve carbon neutrality by 2050. It is important to rethink the entire strategy in this area, in line with the European guidelines.

In general terms, the proposed State Budget for 2023 is, according to the CES, timid in its support measures for the ongoing and expected economic and social effects of the war in Ukraine; it is cautious with regard to European developments in response to the crisis, starting with monetary policy; but it has room for manoeuvre to deal with the domestic repercussions of any worsening of the international situation. The CES considers that the government should adopt a flexible and dynamic stance in budgetary execution, responding promptly to the most unforeseen situations, particularly in terms of increased support for families and businesses.

Explanations of Vote:

In the opinion of the Confederation of Trade and Services Portugal, the opinion of the CES should take a clearer and more incisive stance, for which reason, even though it agreed with a large part of the content of the opinion, this Confederation voted to abstain in the final overall vote.

According to the CGTP-IN, the Opinion of the CES comprises a value judgement of the Medium Term Agreement for the Improvement of Income, Wages and Competitiveness, the contents of which will, in the opinion of the CGTP-IN, be profoundly negative. The CES Opinion, also in the area of taxation, does not criticise the measures envisaged in the State Budget in relation to corporate income tax, namely those measures which aim to deepen the Tax Benefits regime. The CGTP-IN voted against the Opinion of the CES on the State Budget for 2023.

Sectors and occupations

    • Economic area Sector (NACE level 2)
      A - Agriculture, Forestry And Fishing A1 Crop and animal production, hunting and related service activities
      A2 Forestry and logging

This case is not occupation-specific.


  • 07 November 2022: Opinion of the CES on the Draft State Budget for 2023 (
  • 30 December 2022: State Budget for 2023 (


Eurofound (2023), Extraordinary support scheme for costs incurred in agricultural production, measure PT-2022-1/3062 (measures in Portugal), EU PolicyWatch, Dublin,


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