Government cuts tax incentives on six projects

The Government has decided to withdraw tax exemptions from six investment projects because the companies involved failed to fulfil their contracts.

Two of the companies were the multinational car manufacturers Peugeot Citroën and Globe Motors Portugal.

The announcement was made last week by the Minister for Foreign Affairs, Paulo Portas.

The other companies were Itarion Solar and Agni INC (alternative energy), Faurecia (automotive sector) and Têxtil Manuel Gonçalves.

According to Paulo Portas, the companies did not achieve the goals agreed leading to the Government’s decision to “withdraw” benefits worth €2 million.

The car sector in Portugal registered a 31.3% fall in 2011 – the largest in Europe – according to data released by the car imports association Sociedade de Importação de Veículos Automóveis (SIVA).