Study indicates that the fuel tax burden weighs more on families with intermediate incomes

A study by the Fundação Francisco Manuel dos Santos reveals that the fuel tax burden is heavier on middle-income families compared to poorer households. This is attributed to the greater reliance on public transport among lower-income groups. The research highlights that the ISP tax, part of the Special Consumption Taxes, disproportionately affects those with intermediate incomes who own cars. The study also notes a decline in tax revenue from fuel due to the increasing electrification of vehicles, indicating a shift in fiscal contributions. The findings are part of a broader analysis of Portugal's tax system and its environmental implications.