Government confirms support for replacing gasoline taxis with electric ones

The minister of Environment and Energy confirmed that micro taxi companies will be able to receive support to replace gasoline-powered vehicles with electric ones.

© Eden Constantino / Unsplash

The government confirmed that the taxi sector will also be covered by the new incentive program for purchasing electric vehicles aimed at microenterprises.

This confirmation was given on Friday, November 6, by Minister of Environment and Energy Maria da Graça Carvalho during an interview with the NOW news channel.

"This program also funds the replacement of taxis," the minister said, explaining that the support will be provided to companies in the sector with fewer than 10 employees.

The measure will allow small taxi operators to benefit from government incentives to replace their gasoline-powered vehicles with 100% electric models.

Support can cover up to two cars per company

The “Fleet + Green — Microenterprises” program, part of the Social Climate Plan, has a budget of 228 million euros. Its goal is to support the purchase of around 13,700 electric vehicles by approximately 9,000 microenterprises.

According to information already released by the government, there is ongoing consideration of allowing each company to receive support for purchasing up to two electric cars.

To be eligible, companies must have fewer than 10 employees and an annual turnover of up to two million euros. It is also required that fuel costs account for at least 5% of their total expenses.

Another requirement will be the mandatory surrender of a gasoline-powered vehicle for dismantling for every electric vehicle purchased. The incentives are intended for the purchase of new cars.

According to information provided by Lusa, the subsidy could cover up to 100% of the eligible amount, excluding VAT, although the maximum limits per vehicle have not yet been determined. The program also provides support for the installation of charging infrastructure.

For now, the prices of eligible cars, the maximum financing amounts, and the application deadline remain unclear.

The government plans to introduce these incentives in 2027, but implementation depends on the European Commission’s approval of the Social Climate Plan.