Tax regulation mechanism (Isenção de Imposto sobre Produtos Petrolíferos e Energéticos - ISP)

Updated: 06.02.2019

Author: Moïra Jimeno

Dedicated small biofuel producers (PPD) benefit from an exemption of the Petrol Product Tax (ISP) (art. 19(2) DL 117/2010). 

Eligible technologies

Biofuels produced by dedicated small producers (PPD, Pequenos Produtores Dedicados) benefit from tax exemption.

Biofuels

Eligible (art. 19 (1) DL 117/2010).

Amount

According to art. 2 n. 9 of Ordinance 320-E/2011, the PPDs benefit from total exemption of the Petrol Product Tax (ISP) up to the global limit fixed at the CIEC (Código dos Impostos Especiais de Consumo), which is 40,000 t/year (art. 90 n. 1 DL 73/2010).
For petrol and coloured and marked petrol, the following ISP rates apply (art. 3 and 4 Ordinance 320-D/2011):
  • Petrol (NC 27101921 and NC 27101925): 0.337 €/liter.
  • Coloured and marked Petrol (NC 27101925): 0.113 €/liter.

Addressees

Dedicated small producers of biofuels (PPD) as defined by art. 19 n. 1 of DL 117/2010.

Procedure

Process flow

The producers (PPDs) submit to the DGEG a request and indicate the amount of biofuel for which the tax exemption (ISP) is being requested (art. 2 Ordinance 320-E/2011). A joint decision, which is automatically and annually renewed, sets the amount of biofuels subject to the tax exemption. Annex I of Ordinance 320-E/2011 lists the documents to be provided by the producers when applying for the recognition as a dedicated small producer (PPD).

Competent authority

Directorate General for Energy and Geology (DGEG).

Distribution of costs

State

The costs of tax exemption are borne by the State

Portugal

Further information

  • Ministério da Economia, da Inovação e do Desenvolvimento. Direcção Geral de Energia e Geologia (DGEG) – Directorate General for Energy and Geology at the Ministry of Economy, Innovation and Development
  • +351 217 922 782
  • DGEG website
  • Racionalizacao.Energia(at)dgge.pt

Basic information on legal sources