Lisbon, Aug. 26, 2025 (Lusa) - Farmers affected by the fires will be able to benefit from a temporary VAT exemption on the donation of animal feed for six months, according to the government's bill that entered parliament on Tuesday.
According to the initiative, farmers living in areas affected by large or serious rural fires since 1 July will be covered.
Exemptions will be granted for a period of six months for transfers free of charge of products used to feed livestock, poultry, and other animals exclusively or mainly intended for agricultural work, slaughter, or reproduction, made to taxable persons who carry out an agricultural production activity and have their residence or tax domicile in the areas concerned.
The six months referred to in the government proposal are counted "from the start of the time period set out in the cabinet resolution", which the government approved last week (Decree-Law 98-A/2025 of 24 August) and which takes effect on 1 July 2025.
As this is tax legislation that alters taxation on consumption, the tax relief will still have to be approved by MPs, and direct approval by the government is not enough for the measure to come into force immediately.
The government had to approve the proposal that entered parliament today, and the final version of the law will depend on the discussion between the political parties.
The initiative also states that the donation of animal feed "does not jeopardise the right to deduct" VAT.
In the statement issued by the cabinet meeting on 21 August, in which it announced the temporary exemption, the government included this measure among several of an "urgent" nature, decided to support the affected populations.
Parliamentary work resumes on 15 September. However, parliament's standing committee meets on Wednesday, 27 August to discuss "the situation of the fires in Portugal" with the prime minister.
Mainland Portugal has been affected by multiple large rural fires since July, especially in the North and Centre regions.
The fires have caused four deaths, including a firefighter, and several injuries, some serious, and have totally or partially destroyed first and second homes, as well as agricultural and livestock holdings and forest areas.
According to provisional official figures, by 23 August, around 250,000 hectares had burned in the country, more than 57,000 of which in the fire that started in Arganil alone.
PCT/ADB // ADB.
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