The new Portuguese draft budget contains a proposal to cut the VAT rate on non-alcohol restaurant services from the 23% standard rate to the reduced, 13% rate. The budget has received a cautious approval from the European Commission, which monitors € currency countries compliance with deficit rules.
The budget has now been sent to the Parliament for approval.
Portugal was forced to raise its VAT rate twice during the financial crisis as it looked to stay within the € rules of maintaining the state’s deficit within 3% of GDP.
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