Cutting taxes for some economic sectors and not for others would be unfair, according to Portugal’s President, when asked about reducing VAT on golf at an event in Albufeira.
Wishing to avoid “higher tax injustices” the President thought he had got away with this controversial topic as the golf industry commissioned a report when VAT was raised to 23% which showed that the net cash affect on the exchequer was less revenue from golf, not more.
The President’s reply was that lowering the VAT rate for golf would result in “fiscal inefficiencies and would be creating injustices."
Cavaco Silva did say that "high taxation is a national evil, not an evil just for a specific sector. It would be wrong if we looked at it in isolation ... because if we reduced VAT without a global view of the entire system, this would lead to an increase in injustices."
The President of the Republic of Portugal was in Albufeira and made a speech at the closing of the Portugal Golf Cup Outreach event. Cavaco Silva added that "tourism is one of the strongest components of the economic recovery of our country and golf has to contribute."
For the president, national tourism is going through “a good time with significant increases in demand from abroad."