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Portugal's tax inspectors demand fairer vehicle reimbursement rates after years of stagnation

Frozen at €0.40 per km since 2009, Portugal's vehicle reimbursement system leaves inspectors struggling. Will the government finally listen?

The image shows a crowd of people standing in front of a tank, some of them holding flags and...
The image shows a crowd of people standing in front of a tank, some of them holding flags and mobile phones. Smoke is billowing from the tank and there is a light illuminating the scene. In the background, there are trees and a wall, suggesting the scene is taking place in a city. The people in the image appear to be protesting, likely in response to the Ukraine crisis, as evidenced by the presence of the tank.

In a letter sent to the Secretary of State for Tax Affairs on March 30—obtained by Lusa—the leadership of the Union Association of Tax and Customs Inspection Professionals (APIT) urgently requested a meeting with the government to discuss the creation of a compensation mechanism, "even if provisional," in response to rising fuel costs following the war in Iran.

Portugal's tax inspectors demand fairer vehicle reimbursement rates after years of stagnation

To date, the government has not replied—neither to this initial letter nor to a follow-up sent later after receiving no confirmation, according to APIT president Nuno Barroso.

Lusa contacted the office of Secretary of State for Tax Affairs Cláudia Reis Duarte to inquire why the government had not responded to the meeting request and to clarify whether it was open to establishing a provisional system to adjust compensation rates, as proposed by APIT, but received no answer.

The union association has proposed a monthly or quarterly review mechanism for these compensations, Barroso told Lusa.

In its letter to the government, APIT acknowledged that while it understands the government plans to amend regulations on cost allowances and compensation for private vehicle use (Decree-Law 106/98 of April 24) later this year, "it is essential to recognize that the failure to update these rates since 2009—combined with the current situation—has led to a de facto impoverishment of workers who use their personal vehicles daily in service of the Tax Authority and the country."

The union called for a working meeting "to develop a compensation scheme (even if provisional) that ensures fair remuneration by adjusting legally established rates to the sharp increases in fuel prices—which, unfortunately, are expected not only to persist but potentially worsen."

At the Tax Authority, it is common practice for tax inspectors to use their personal vehicles for work-related travel, including visits to businesses, accounting firms, and other taxpayers for audits or inspections.

The compensation rate remains unchanged since 2009—€0.40 per kilometer.

The legal framework governing cost allowances and transport reimbursements for the entire public administration was established in 1998, with private vehicle compensation rates set by Order No. 1553-D/2008 of December 31.

Between 2010 and 2023, compensation rates were reduced, only returning to 2009 levels as of January 1, 2024.

Since 2015, APIT has advocated for a compensation mechanism that accounts for fuel cost increases since 2010, Barroso noted.

The union's demand for regulatory reform has spanned multiple governments, and now APIT is pushing for a provisional system to address this year's price surges.

In its March letter, APIT reminded the government that between January 1 and March 30, the average price of 95-octane gasoline rose by 14.57%, while diesel increased by 29.14%.

Current regulations permit the use of private vehicles "on an exceptional basis, and in cases of proven service necessity," provided the employee agrees.

The law allows this when "all cost-effective options for using official vehicles have been exhausted, and delays in transport would cause significant disruption to service operations."

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