Portuguese Government Clarifies IUC Vehicle Tax: No Increase Planned
Amidst circulatingโฃ misinformation, particularly on social media platforms, the Portuguese Ministryโข of Finance has issued a clear statement: the government will not โข increase the Imposto รnico de Circulaรงรฃo (IUC) vehicle tax for vehicles registered before or after 2007.
The Ministry emphasized that upcoming changes, outlined in the Agenda for Tax Simplification presented on January 16th, focus solely on streamlining the payment process. These changes,currently under discussionโ in the Assembly of โtheโ Republic,introduce the option of installment payments for IUC amounts exceedingโข 100 euros.
According too the โขMinistry, this adjustment is designed to “facilitate voluntary compliance, reduce the โrisk of forgetfulness and avoid the imposition of fines.” The government believes this will โขultimately ease the financial burden, particularly for households owning multiple vehicles.
“Not only will there not be โคany increase in the โขIUC, but this measure will alleviate the โfinancial effort, especially โคfor families with more than one vehicle,” the ministry stated in its clarification.
Furthermore, the proposed State Budget for 2026 (OE2026), recently submitted to the Assembly of the Republic, confirms the government’s intention to maintain the existing additional amount currently applied to the IUC.
We hope this clarifies theโค situation regarding the โIUC โขtax.Do you have thoughts onโ how tax simplification can benefit citizens? โคWe’d love to hear your outlook in the comments below! โข And if you found thisโฃ articleโ helpful, please share it with โyour network or subscribe to our newsletter for moreโ timely updates and insightful analysis.