Medium-sized concerts could benefit most from a cut in sales tax (often referred to as VAT) on tickets for live shows, according to a leading promoter.
Parliament approved a reduction in VAT levied on tickets from an intermediary rate of 13 per cent to six per cent.
The state budget for 2019, which was approved by the Assembly of the Republic on 29 November, also sees rates cut for Portugal’s islands, to five per cent in Madeira and four per cent in The Azores.
It is a move expected to be widely welcomed by Portuguese promoters hoping to encourage fans to sell out venues and arenas.
Alvaro Ramos, MD of the Lisbon-based promoter Ritmos & Blues, says he expects shows with less demand to benefit from reduced ticket prices.
“It is good news and allows me to bring down ticket prices a little on new shows,” he says. “The real beneficiaries will be those attending medium-sized shows, rather than the high-demand, must-see concerts we promote.”
Ramos says medium-sized shows include concerts at venues of up to 6,000 capacity, with tickets generally priced around €45 ($52).
Ritmos & Blues is currently promoting shows by Michael Bublé and André Rieu, having also worked with U2, Shakira and Queen + Adam Lambert.