Portuguese firms revolt against energy tax

Two major Portuguese energy companies have refused to pay €55m they owe under a new tax scheme, putting over a third of the expected revenues out of the government’s reach.

Oil and gas firm Galp and the national electricity grid operator REN do not want to pay the extraordinary tax on the energy sector approved by parliament last December.

Renewables, smaller cogeneration and biofuels producers are exempt from the tax, which is expected to raise €150m in 2014 and which the government plans to continue next year.