The Budget, Finance and Public Administration Commission (Cofap) has specifically approved the PS project that expands the portion of electricity consumption subject to a reduced VAT rate. The initiative received the green light with the PSD voting against, Chega abstaining and the remaining parties voting in favour.

The measure determines that domestic electricity consumption (for contracted power that does not exceed 6.90 kVA) pays a VAT rate of 6% up to 200 kWh per period of 30 days. For large families (with three or more dependents), consumption subject to the reduced VAT rate increases up to 300 kWh per 30-day period.

This reduction in VAT on electricity paid in these cases will only be felt in a few months on family bills, as this measure will only come into force from January 2025. It is estimated that this measure will benefit 3.4 million families in our country.