ACIF-CCIM Calls for Suspension of New Rent-a-Car Tax in Madeira
Madeira GuideThe ACIF-CCIM has urged the Regional Government of Madeira to suspend a new rent-a-car tax, citing concerns over its retroactive impact on existing contracts and the potential financial burden on the industry.
In a recent appeal to the Regional Government of Madeira, the ACIF-CCIM (Madeira Chamber of Commerce and Industry) has called for the suspension of a newly imposed rent-a-car tax. This tax, outlined in Portaria No. 214/2026, is designed to regulate the car rental industry in the Madeira Autonomous Region. However, the ACIF-CCIM argues that the regulation does not adequately address several critical issues, warranting a reevaluation before full implementation.
The primary concern raised by the ACIF-CCIM is the tax's retroactive application, which affects contracts and reservations made before the tax's enforcement. This situation prevents rent-a-car companies from adjusting their pricing to accommodate the new tax, potentially resulting in significant financial losses.
According to a survey conducted among 15 companies, the tax impacts 23,980 contracts, covering 175,000 rental days, with an estimated additional cost of over €595,000. Since these contracts are already confirmed, companies must absorb these costs, threatening their profitability and investment capabilities.
The ACIF-CCIM also highlights that the decree lacks provisions for exceptions or differentiated treatment for local residents renting vehicles. This oversight could further strain the local economy, affecting both businesses and residents who rely on car rentals for transportation.
The association acknowledges the efforts made by the Regional Government and IMT-Madeira in regulating the car rental sector but insists on the need for urgent revisions to prevent detrimental retroactive effects. The ACIF-CCIM is advocating for a fair regulatory framework that considers the operational realities and economic implications for the industry.
"The financial impact is significant and poses a risk not only to the companies but to the regional economy as a whole," stated an ACIF-CCIM representative.
Sources
Madeira Guide
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