Portuguese government to get €50M-€100M from windfall tax

The Portuguese government could net up to €100 million from its windfall tax on local energy and food retail companies which have seen profits soar as an indirect result of the war in Ukraine and energy crisis.

The Secretary of State for Fiscal Matters, Nuno Félix said that while the government recognises there is a large margin for error, the extraordinary ‘windfall’ contribution on the energy and food distribution should give revenues of between €50 million and €100 million.
“It is difficult guess lottery results before the result of the bets are in. We don’t yet have data that allows us to arrive at an exact number. The tax year 2022 is still ongoing and 2023 has yet to begin”, he told the Portuguese Parliament after making a back of the envelope calculation.
On Tuesday, the proposal by the government is to create an extraordinary contribution tax on the energy and food distribution sectors in Portugal as well as the associated legislation. The government intends to slap a 33% tax or windfall tax on extraordinary profits for the tax years of 2022 and 2023 because of windfall profits of 20% on average over the past four years.