Filipe de Vasconcelos Fernandes is quoted by Jornal de Negócios following the recent decision by the Constitutional Court declaring that the application of the Extraordinary Contribution on the Energy Sector (CESE) to concessionaires responsible for the transport, distribution and underground storage of natural gas violates the Constitution of the Republic, more specifically the principle of equality.

VdA's senior counsel clarifies that ‘this ruling – and its general binding force – only affects a specific segment of the universe of CESE taxpayers’ and, considering that since 2019 there have been no ‘relevant changes’ to the law, ‘all subsequent financial years are covered, solely and exclusively for the same taxpayers’.

Despite its limited scope, Filipe de Vasconcelos Fernandes emphasises the relevance of the decision: ‘it is of significant importance from a tax policy point of view, as it shows that, step by step, the CESE regime is being undermined by unconstitutionalities specifically related to each of the groups or subgroups burdened’.

Filipe de Vasconcelos Fernandes admits that the same could happen with ‘wholesalers of crude oil and petroleum products, which are also not part of the National Electricity System’ and anticipates that, "in the longer term, the CESE may become largely empty of content or, more problematically, burden only those sectors that contribute most to the energy transition, in this case renewables."

• The full article can be found here.