Former PS-Madeira deputy Gregório Gouveia has advocated for Madeira to fully utilize its autonomous powers to reduce the tax burden, suggesting the island should align its Value Added Tax (VAT) rates with those in the Azores.
Gouveia believes there is no valid reason to maintain the current standard rate of 22% and intermediate rate of 12%. He explained that the previous increase in VAT was a consequence of the Economic and Financial Adjustment Plan, imposed due to the region's accumulated debt, and that this justification no longer exists.
He proposed that Madeira should adopt the Azores' VAT rates, which are 16% for the standard rate and 9% for the intermediate rate. Gouveia also pointed out that none of the nine outermost regions of the European Union have a VAT rate equal to or higher than Madeira's.
