State collects another 926 million in VAT: money enough to pay pension bonuses and IRS reduction

The Portuguese State collected an additional 926 million euros in VAT between March and July, representing a 9.7% growth compared to the same period of the previous year. This value represents a growth rate well above that forecast in the State Budget for 2026. The additional VAT revenue demonstrated a performance above government expectations, indicating a more robust economic recovery than initially projected. The excess of tax revenue verified allows the government to have budgetary margin to fulfill commitments made. The money collected through this VAT increase is sufficient to finance the payment of pension bonuses and the IRS reduction, two measures that were among the executive's priorities. This favorable budgetary situation arises in a context where the government needed sources of financing to fulfill its political promises, and the excess VAT revenue provided this financial basis. The combination of these fiscal measures represents relief for taxpayers and pensioners, in a period when the cost of living has been a constant concern. The growth in VAT revenue also suggests an increase in domestic consumption, which may have positive implications for the Portuguese economy in general.