Portugal 2% VAT rise from 23% to 25% proposed |
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14 August 2011 In response to pressure for a reduction in employer labour costs, a proposal for a further increase in Portuguese VAT has been submitted. This calls for a hike in VAT of 2%, to 25%. Click here to read about previous Portugal VAT rises This rise comes following two increases in VAT in the past 18 months, taking the standard VAT rate from 20% to 23%. These earlier increases came as part of economic austerity measures as Portugal's sovereign debt rose rapidly, and debt markets increased borrowing costs in response. This latest proposed rise has been put forward by the Central Bank of Portugal and the Finance, Economy and Welfare ministries. It is in response to calls for a reduction in employer social security contributions to provide local companies with improved international competitiveness. |
