Portugal rejects windfall tax

The government has decided not to impose a tax on companies' windfall profits, according to ECO.

By TPN/Lusa, in Economy, Politics · 03 Sep 2022, 19:02 · 3 Comments

The measure, which is already being applied in some countries and defended by some deputies, has, in Portugal, been ruled out by some of the Portuguese government leaders. Given this scenario, the Government will resort to dialogue and negotiation or other social obligations.

According to Público, António Costa wants to find a solution that avoids increasing the tax burden on companies, even those with extraordinary profits.

There are companies whose business has benefited due to the increase in prices," the head of government admitted, stressing, however, that "for some of them, we must take into account" that there are already taxes.

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Comments

To quote from the article “There are companies whose business has benefited due to the increase in prices," the head of government admitted”
Yes, sure there have been many companies benefiting from the escalating cost of living. Then do something to stamp it out!!
Every time we go shopping the prices have gone up again. Staples such as rice, milk, bread are just a few noticeable increases at alarming rates.

By L from Other on 05 Sep 2022, 10:46

I'm relieved at this decision not to impose a windfall tax, as the govt shouldn't be constantly interfering in the economy and distorting the price mechanism. Prices and profits allocate resources, for instance, chronic losses are a market signal for resources/capital to leave an industry in search of better returns elsewhere.
To have done so would imply the opposite would be needed when energy prices are very low (like at the start of COVID in spring 2020), so energy companies would then expect govt support, at the expense of the taxpayer. People have to take responsibility for their lives and not expect govt intervention every time the price of a product or service changes significantly. I don't want Portugal becoming a centrally-planned economy like the Soviet Union was.

By Billy Bissett from Porto on 07 Sep 2022, 10:33

The last thing they want to do is reduce profits of companies where they have a shareholding!

By Greg from Other on 09 Sep 2022, 09:41