Galp stated that the proposal to tax the extraordinary profits of oil is already integrated into the current tax structure and warned about the investment cycles of the sector.
© Lusa
26/10/2026
by
Lusa
A Galp argued today that the proposal to tax the extraordinary profits of oil is already a reality captured by the existing fiscal structure and warned for the investment cycles of the sector.
The government recently sent a proposal to Parliament which provides for a 33% rate on oil extraordinary profits in 2026.
“ That is a reality that is already being captured with the fiscal structure. We already have a tax rate that between the normal rate of IRC [Tax on the Income of Collective Persons] and the additional to which we are subject, this quarter, is 43% (average rate)”, said Co-President Galp, Maria João Carioca, in statements to Lusa.
Maria João Carioca warned that any such measure should take into account that the sector has high investments and relatively long cycles.
According to the data cited by Galp's executive co-president, between 2005 and 2025, some EUR 7,000 million was invested in the Sines refinery.
However, in 11 of these 20 years the cash flow [cash flow] was negative, i.e. the investment was higher than the return, highlighted.
On 15 September, the government proposed a 33% rate on the share of oil profits in 2026 that exceeds by more than 20% the average of 2024 and 2025, for which the revenue was allocated to support families, firefighters, the social sector and transport.
The measure is contained in the draft law establishing the Temporary Solidarity Contribution on the Oil Sector (CSTSP), delivered by the executive to the Assembly of the Republic and which will have to be assessed by Members.
The revenue collected will be allocated to the Environmental Fund and the Institute for the Financing of Agriculture and Fisheries (IFAP) and should be used exclusively for financing measures adopted after 28 February 2026.
Among the recipients are final consumers of fossil fuels, in particular families, humanitarian associations of firefighters and social sector entities, as well as freight and passenger transport companies with public service obligations.
The contribution applies to companies resident or with a “stable establishment” in Portugal that carry out activities in the crude oil and refining sectors, considering entities that obtain at least 37.5% of turnover in these activities.