Government wants to deduct VAT on gasoline for hybrids – The Economic Journal

The Government wants to approve the deduction of VAT on gasoline hybrid cars. The measure would be similar to that currently in force for passenger cars and commercial vehicles which are entitled to a deduction of 50% VAT.

If this happens, the measure will only take effect from January 1, 2020, if the current Government wins the October legislative elections, and if the measure is approved under the next State Budget for next year.

"On the deduction of gasoline VAT, I think it makes sense in the hybrid plug-in vehicles. I think it makes sense, and I hope that the next State Budget will contemplate that, "said the minister of Environment and Energy Transition in an interview with TSF radio, without advancing what percentage of the planned deduction would be.

João Matos Fernandes also announced that the Government intends to empower municipalities to prohibit the entry of cars into cities.

"I would like to have the power to do it, but I think that municipalities have to be able to define a contingent of cars they want to have in their city, or in some areas of the city," he told TSF microphones, without advancing dates for entry into force of this measure.

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