Construction Sector Celebrates 6% VAT Cut But Demands Clarity on Ongoing Projects

Construction Industry Applauds VAT Reduction

The Portuguese construction sector has warmly welcomed the government's decision to reduce VAT to 6% for construction and housing rehabilitation, a move that aligns with long-standing industry demands. This measure is seen as a crucial incentive to boost the market.

Calls for Interpretive Norm on Pending Cases

However, industry leaders emphasize that the reduction "doesn't make sense without clarifying" pending situations. Manuel Reis Campos, President of the Association of Civil Construction and Public Works Industries and the Portuguese Confederation of Construction and Real Estate, praised the measure but highlighted the need for an "interpretive norm" to address the many large ongoing processes. He expressed hope that these details would be resolved during the legislative process.