The Prime Minister rejected a proposal by the Livre party to reduce the standard VAT rate from 23% to 21% as part of the 2027 State Budget discussions. The government maintains that such broad tax cuts primarily benefit higher-income households rather than the most vulnerable.
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The environmental association Zero has criticized the 2027 State Budget proposal, arguing that it prioritizes tax cuts over ecological transition and climate change prevention. The group claims the budget lacks specific investments in waste management, water resource monitoring, and a clear roadmap for ending fossil fuel subsidies by 2030, while noting that a large portion of 'green' funds are allocated to repairing storm damage rather than proactive prevention.
Student associations from five higher education institutions have called for a protest in Lisbon on October 21, 2026, opposing the government's proposal to unfreeze tuition fees starting in the 2027/2028 academic year. The proposed budget includes adjusting the maximum tuition fee (currently 697 euros) by the average inflation rate (CPI excluding housing) from 2026.
Parliament has unanimously approved the government's proposal to extend the extraordinary discount on the ISP tax for fuels through December 31, 2026. This measure effectively returns to consumers the additional VAT revenue collected by the state when fuel prices exceed a set threshold relative to early March 2022. The legislation is retroactive, taking effect from June 30, 2026.