The Portuguese government moved to impose a temporary tax on the profits of distribution companies, including supermarkets and hypermarkets, highlighting what some firms are earning amid the current crisis. This was stated in a speech in the Portuguese Parliament by Prime Minister António Costa, who outlined the government’s plan to address what it views as extraordinary gains by certain players in the market.
Costa noted that the levy would apply not only to energy sector players but also to distribution companies that have benefited from crisis-related conditions. He said the measures are meant to ensure those benefits are shared more broadly, aligning with the broader goals of the 2023 budget discussions now underway in parliament. The prime minister’s remarks were cited by the newspaper O Jornal Economico as he summarized the scope of the government’s forthcoming bill.
The debate in parliament has intensified as lawmakers review the general state budget for 2023. In response, representatives from the distribution sector have defended their position, arguing that profits in their industry are not extraordinary and that margins remain narrow. Gonçalo Lobo Xavier, president of the Portuguese Distribution Companies Association (APED), publicly stated on TSF radio that companies within the sector are not enjoying outsized gains and that operating margins are constrained.
The government’s announcement came in the wake of the quarterly financial disclosures from Jerónimo Martins, the company behind Pingo Doce, one of the country’s leading supermarket chains. Jerónimo Martins reported strong results for the first nine months of 2022, including a net profit of 419 million euros, up about 29.3 percent year over year, with turnover rising around 21 percent to 18,392 million euros. These figures underscore the broader context in which policymakers are weighing profit taxation amid economic pressures and rising living costs, and they contribute to the ongoing public and political dialogue about tax policy and the distribution of windfall profits within essential sectors.