Portugal's 'Green tax' rebates to benefit only companies and the better off

The Minister for Environment, Moreira da Silva continued today to claim that money raised from the new "green taxes" included in the 2015 State Budget will help all of our futures by the allocation of tax credits to businesses to encourage "energy efficiency."

"Fiscal neutrality must be achieved every year and in future the strategy of recycling the revenue from green taxes should contribute not only to income tax relief for families, but also for the allocation of tax credits to companies for investments in energy efficiency," argued the minister.

In his speech at the general debate on the 2015 State Budget, the minister challenged the opposition parties, particularly the socialists, to contribute to the "Commitment to Green Growth" paper presented in September which included green tax reform, considering that it is indispensable to generate policy solutions.

"The goal is not to raise taxes, never was," said da Silva, noting that in parallel with raising tax on fuel and plastic bags there are "incentives for electric cars, and for projects that support nature conservation and forestry."

Left Bloc MP Luís Fazenda criticised the "myth of neutrality," arguing that the Government's policies in this sector simply raise revenue without bothering actually to combat practices harmful to the environment.

Fazenda asked, "Why not require large stores to use biodegradable plastic bags" instead of charging customers 10 cents per bag?” Now that would be ecologically sound.

The deputy of the communists, Bruno Dias, rejected the plans to increase taxation rates under, as the increases "puts the unemployed and the millionaire at the same taxation level" and noted that 62% of households in Portugal do not have an income sufficient to pay income tax so can hardly benefit from a rebate.

If the goal is not to raise taxes, as the minister suggests, then the goal simply is to redistribute money taken in taxes from the majority of the population to subsidise those that can afford electric cars, have sufficient income to pay income tax, and the corporate sector.

When pressed by the country's restaurant sector to reduce VAT to 12%, Portugal's President Cavaco Silva justifies the maintenance of a standard VAT rate as it is the same tax for everyone and so is 'fair.'

The new Green Taxes seem unfair as everyone will pay for plastic bags and the increased tax on fuel purchases but not all can benefit from the planned rebates to be handed out by the government to taxpayers and the corporate sector.

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