Between March and July, VAT revenue in Portugal grew 9.7% compared to the same period the previous year, representing an increase of 926 million euros in revenue from this tax.
This growth significantly exceeded the forecasts that had been included in the State Budget for 2026, indicating that budget execution is performing better than expected in this area of taxation.
The additional VAT revenue is sufficient to cover two measures planned by the government: the payment of pension bonuses and the reduction of IRS, which gives the executive more budgetary margin to fulfill these commitments.
The article does not specify which age or social groups are most affected by these measures, nor does it detail the scheduled timeline for implementing the IRS reduction.
