Paulo Cafôfo, parliamentary leader of the PS party, argued that Madeira's budget surplus, which exceeded 134 million euros in 2025, should be used to reduce the tax burden on the island's inhabitants.
Cafôfo based his position on a 2023 Bank of Portugal report, which indicated that the temporary VAT reduction on essential goods positively impacted prices. VAT revenue in 2025 reached 600 million euros.
