From traffic fines to brandy: small numbers can also yield (or take away) many millions from the State
The recent discussion of the State Budget for next year focused on the major headings where the Government foresees greater expenditure and revenue, but the almost 500-page document contains many other smaller components that will fatten (or shrink) the public coffers with many millions and which would have gone unnoticed by the majority of Portuguese people. Here is a list with some examples:
Traffic fines amount to more than €100 million
Like every year, not even the current year is over, and successive Governments make predictions about the number and severity of traffic fines they will charge. This time, the Budget for 2025 foresees a budget of 100.5 million euros with fines and fines for traffic code violations, which represents a decrease of around 24 million in relation to what was budgeted for 2024.
In total, the fines and penalties will yield R$324 million to the State next year (compared to the R$391 million recorded in the Budget for the current year). The executive led by Luís Montenegro is predicting that the Portuguese will be more compliant in paying their debts, as he predicts that late payment interest – the rate that applies when a given debt is not paid within the stipulated period – will yield around a third of what they yielded in 2024.
Tolls will yield €110 million less
The end of tolls on the ex-SCUT, which comes into force in January next yearapproved via Parliament on a proposal from the Socialist Party, will reduce State revenues by around 110 million euros. This is the amount that Montenegro had to subtract from the table for 2025, with total toll revenue at 258 million euros.
The fee revenue segment, which includes tolls, will, however, increase to 3.2 billion euros. This also includes bribes (398 million euros expected for 2025), court fees (204 million) or commercial registration fees (107 million).
State wins ‘totobola’ with stamp duty…
With the expected increase in consumption by Portuguese families, the State must allocate a few million more with the taxes it charges on the social games of Santa Casa de Lisboa, such as ‘Eurom Millions’ or ‘Totobola’, but also on lotteries, tax from the gambling in casinos. In current revenues, these components are included in the ‘Others’ chapter and, in total, will yield more than R$100 million in relation to 2024, for a total of R$3.6 billion. Revenue from stamp duty also comes into play here – which records the biggest variation – or single circulation tax.
… and tax exemption when purchasing a house does not take away income
Despite the exemption from stamp duty for the purchase of a home by young people up to the age of 35, the executive points to an increase in the income from stamp duty relating to interest charged on loans for home ownership. In total, Montenegro has an increase of 100 million euros in this component to more than 143 million euros, compared to 39 million euros budgeted for 2024.
Brandies yield less in 2025
For next year, the government will maintain lower rates for some distilled drinks, such as fruit brandies, as long as they are produced in certain regions, benefiting from a 25% rate in relation to the normal tax rate on alcohol. In 2024, these drinks generated more than 800 thousand euros for the national coffers, but this year, due to lower production, they will generate just over 600 thousand euros.
