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Portuguese PM clashes with rivals over fuel taxes and living costs

A fiery exchange reveals deep splits on tax cuts for essentials. Can Portugal's leaders unite to ease financial strain on families and businesses?

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Portuguese PM clashes with rivals over fuel taxes and living costs

Prime Minister Luís Montenegro has clashed with opposition leaders over fuel taxes and cost-of-living measures. In a heated exchange, he accused both the Socialist Party (PS) and Chega of hypocrisy on economic policies. The debate centred on rising fuel prices and proposed tax cuts for essential goods.

The confrontation began when Finance Minister João Carneiro highlighted a recent increase in diesel taxes. He noted that the government had raised fuel duties by 2.3 cents per litre over the past two weeks, despite calls for reductions. Carneiro criticised the move, stating, 'When we expected the government to cut fuel taxes, it has done the opposite—it has increased them.' His remarks referred to the scaling back of the extraordinary ISP (Petroleum Tax) discount on diesel.

Montenegro fired back at PS leader Pedro Nuno Santos, accusing him of dishonesty over fuel tax policies. He then turned his attention to Chega’s leader, André Ventura, labelling him *'the most socialist of Chega’s MPs'* in his approach to tackling inflation. The prime minister acknowledged shared concerns about economic struggles but questioned how best to address them. Later, Montenegro pointed out that both the PS and Chega support similar tax relief measures. These include zero VAT on basic food items, reduced VAT on energy, and lower fuel taxes. He then directed a sharp remark at the PS leader, saying, *'And now you, sir, want to be the most Chega-like of the Socialist MPs.'* Amid the tensions, Montenegro also struck a more conciliatory tone. *'I’ll be fair—I believe we share the same concern for the hardships facing people and businesses,'* he admitted. *'Where we may differ is in how we work together to help them overcome these challenges.'*

The exchange underscored deep divisions over how to ease financial pressures on households and businesses. While all sides agree on the need for tax relief, disagreements remain over implementation. The government’s recent fuel tax hike has further fuelled the political dispute.

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