Portuguese Government Clarifies IUC Vehicle Tax: No Increase Planned

Amidst circulating⁣ misinformation, particularly on social media platforms, the Portuguese Ministry⁢ of Finance has issued a clear statement: the government will not ⁢ increase the Imposto Único de Circulação (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 discussion‍ in the Assembly of ‌the‌ Republic,introduce the option of installment payments for IUC amounts exceeding⁢ 100 euros.

According too the ⁢Ministry, this adjustment is designed to “facilitate voluntary compliance, reduce the ​risk of forgetfulness and avoid the imposition of fines.” The government believes this will ⁢ultimately ease the financial burden, particularly for households owning multiple vehicles.

“Not only will there not be ⁤any increase in the ⁢IUC, but this measure will alleviate the ‌financial effort, especially ⁤for 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.