Portugal exempts municipalities meeting recycling targets from waste tax

The Portuguese government approved a decree‑law on Thursday that waives the Waste Management Tax (TGR) for municipalities that achieve the EU‑set targets for preparation, reuse and recycling of urban waste. The legislation amends the General Waste Management Regime and creates a new revenue‑allocation model, directing most of the tax income to the Environmental Fund to finance circular‑economy projects.

The decree also strengthens rules for construction and demolition waste, encouraging selective deconstruction, improving asbestos safety and ensuring compliance with EU regulations on waste transfers. Officials say the measures deepen the government's commitment to a circular economy and bolster support for local authorities and waste‑sector operators.