The Ministry of Finance said it will keep the 23% VAT collected on premium rate calls made to help the victims of the current fires.
The Ministry of Finance announced on Tuesday that the law does not allow the State to waive VAT but, as this is the case, it has been decided by government that an equivalent sum will be channelled into civil protection activities and social support.
The VAT is levied on those who kindly have made premium line telephone calls thinking that all of the money will go to support the victims affected by the recent fires in the Pedrógão Grande, Figueiró dos Vinhos and Castanheira de Pêra areas.
"Since it is not legally possible for the State to waive VAT on non-exempt activities, the Minister of Finance has decided that the VAT received on non-profit fundraising initiatives to support fire victims will be fully channelled into civil protection or social solidarity projects in support of the victims," the ministry said this evening, narrowly avoiding a nasty showdown.
The ministry also has extended the various tax filing deadlines for companies and individuals affected by the fires, but only until the end of the month.
The exemption from any fines for late filing will cover anyone else who can show that they were affected.
This is a rare example of humanity from the Ministry of Finance and one that will be welcomed by all of those affected.
