Welfare institutions in Madeira risk not recovering the Value Added Tax (VAT) paid on projects funded by the Recovery and Resilience Plan (PRR). The Portuguese Republic intends to deduct this amount from financial transfers to the Autonomous Region of Madeira.
The region refuses to bear the loss of nearly 5 million euros alone. Carlos Pereira, a Madeira representative, previously raised the issue with the Minister of Territorial Cohesion, who stated he was unaware of the situation.
This deadlock between Lisbon and the regional government places these associations in a precarious financial situation.
