Fuel tax burden weighs more on middle-income families

A study by the Francisco Manuel dos Santos Foundation indicates that middle-income households bear a higher relative tax burden from the ISP (Tax on Oil and Energy Products) than lower-income households. The authors attribute this to the fact that lower-income groups rely more on public transport, whereas middle-income households depend more on personal vehicles. The study notes that while tobacco and alcohol taxes are regressive (weighing most heavily on the poor), the ISP is more regressive for those in the middle of the income distribution.