The temporary ISP relief cost 604 million euros in 2025, according to an estimate by the Technical Budget Support Unit (UTAO), which requests disclosure of the impact of this measure remaining in force.
In the report on budget execution in public accounting in 2025, published this Friday, March 13, UTAO points out that the estimated direct impact of the inflation package worsened the overall balance by 1,106 million euros, highlighting the ISP’s temporary tax relief measures (604 million), support for rent and housing (285 million) and support for Ukraine (202 million).
The ISP discount, in the amount equivalent to the reduction from 23% to 13% in the ICMS rate that applies to this tax, is, therefore, the measure that represents the biggest burden in this package.
The measure represented a reduction in revenue of 1,073 million euros in 2023, 1,042 million in 2024 and UTAO’s estimate is an impact of 604 million in 2025, with the unit remembering that the “remaining in force of this generic measure to support fossil fuels contradicts several Recommendations of the Council of the European Union and the European Commission”.
“The Ministry of Finance announced the gradual reversal of this measure, having already started this process, but did not provide information on its impact in 2025, nor in 2026, an insufficiency of information repeatedly signaled by UTAO”, notes the entity.
Furthermore, UTAO calls for the impact of this measure remaining in force to be disclosed, “which will allow us to monitor its gradual withdrawal throughout the remainder of 2025 and 2026, a good budgetary practice and a step towards transparency”.
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