PORTUGAL Law and Practice Contributed by: Andreia Candeias Mousinho, Diogo Duarte Campos, João Marques Mendes and Raquel Freitas, PLMJ
The following are some examples of environmental tax mechanisms (eg, deterrence taxes, fees and contribu- tions) currently in force in Portugal. • Waste management fee ( Taxa de Gestão de Resíduos ) – this aims to encourage the reduction of waste production, stimulate compliance with national waste management targets and improve the performance of the sector. • Fees due under Producers Responsibility Organi- sation (PRO) schemes (eg, ecovalor paid to the PRO and contribuição financeira paid to public services for municipal waste management). • Water resources management fee ( Taxa de Recur- sos Hídricos ) – this aims to compensate for the environmental cost inherent in activities likely to have a significant impact on water resources. • Carbon tax (TCO₂) – this is levied on sectors not included in the ETS. This tax is indexed to the price of carbon in the ETS sector. • Road vehicle tax ( Imposto Único de Circulação ), vehicle excise duty ( Imposto Sobre Veículos ) and excise duty ( Impostos Especiais de Consumo ) – these seek to burden taxpayers in proportion to the environmental cost they cause (eg, the influence of particle or CO₂ emission levels in the calculation of the road vehicle tax). • A financial contribution for light or very light plastic bags and for single-use take-away packaging for meals (save for packaging used for meals handed out under charitable schemes or, being 100% recy- clable, having at least 25% of recycled materials incorporated). • A tax on less energy-efficient light bulbs. • A carbon tax on air and sea travel. • A contribution for single-use plastic, shopping bags or aluminium packaging for ready-made meals. • The influence of parameters such as location in areas of urban regeneration, energy efficiency or use of renewable energy (eg, 50% reduction in the municipal property tax rate when the property is exclusively used in the production of energy from renewable sources) in the calculation of municipal property tax ( Imposto Municipal Sobre Imóveis ). • Expenses related to exclusively electric vehicles are not subject to autonomous taxation for IRC or personal income tax ( Imposto sobre o Rendimento
das Pessoas Singulares , or IRS), provided that the acquisition cost does not exceed EUR50,000. There is the possibility of deducting value-added tax (VAT) on the purchase, manufacture or importa- tion, leasing and conversion of electric vehicles or plug-in hybrids, provided that the acquisition cost does not exceed EUR50,000, as well as charging- related expenses. 6.3 Incentives, Exemptions and Penalties Tax benefits include the following: • IRC exemption for PROs – to manage specific waste flows during the entire licensing period for results which, during this period, are reinvested or used for the purposes legally attributed to them; • exemption from property transfer tax ( Imposto Municipal a Transmissão Onerosa de Imóveis ) and stamp duty ( Imposto de Selo ) on acquisitions that fall within forest intervention areas; • a vehicle purchase tax ( Imposto Sobre Compra de Veículos ) exclusion for non-motorised vehicles and exclusively electric vehicles or those powered by non-combustible renewable energies; • exemption from road vehicle tax for non-motorised, exclusively electric vehicles or those powered by non-combustible renewable energies; • deductible expenses in higher proportion to their nominal value, such as the expenses of car-sharing and bike-sharing systems, with the acquisition of fleets of bicycles, and with electricity and vehicular natural gas for vehicle supply, etc; • possibility of deducting VAT on the purchase, manufacture or importation, leasing and conver- sion of electric vehicles or plug-in hybrids; • exemption from municipal property tax, municipal property transfer tax and stamp duty for build- ings completed more than 30 years ago or located in urban regeneration areas, provided they fulfil certain conditions – namely, that they have been rehabilitated; and • under IRC, there is the possibility of deducting provisions set up to cover the cost of repairing environmental damage.
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