Driving schools in Portugal call for fuel and tax measures

ANIECA has submitted three proposals to parliament, including full VAT deductions on fuel and an exemption from vehicle tax for learner vehicles.

By Kate Sreenarong, in News, Economy · 05 Oct 2026, 11:04 · 0 Comments

Portugal’s driving schools are calling for measures to reduce the cost of running their businesses, arguing that high fuel prices and taxation are placing significant pressure on the sector.

The National Association of Driving Schools (ANIECA) has submitted three proposals to the Assembly of the Republic’s Budget, Finance and Public Administration Committee, asking that they be considered for the 2027 State Budget.

Practical training

The proposals include removing the Single Road Tax (IUC) from vehicles used for driving instruction, allowing driving schools to fully deduct VAT on the fuel used by those vehicles, and establishing a support scheme for the energy costs associated with practical driver training.

ANIECA says the measures would apply only to vehicles officially licensed for driving instruction and registered as “Adapted for Instruction” on the vehicle registration document.

According to the association, driving schools across Portugal spend around €26 million a year on fuel, before VAT, which accounts for more than 46 percent of the sector’s spending on external supplies and services.

Public interest

The association, which represents more than 730 driving schools nationwide, argues that driver training should be treated as a public interest activity because of its role in road safety.

António Reis, President of ANIECA, stated that “Portugal has been weighed down by fuel costs and taxation for years”.

He argued that driving schools provide training essential to people’s lives while facing particularly high operating costs.

ANIECA also points out that driving schools are the only sector unable to fully deduct VAT on fuel used by the vehicles that form part of their basic business equipment.

State cost

The association estimates that the combined cost to the state of the proposed IUC and VAT measures would be no more than around €3.5 million.

It argues this would have a relatively limited impact on the State Budget, while potentially supporting road safety, mobility, and access to transport across different parts of the country.

The proposals come as part of discussions around the 2027 State Budget, with ANIECA calling for specific measures to reduce the operating costs faced by driving schools.