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Finance Minister admits considering updating specific deduction
The Minister of Finance, Miranda Sarmento, today admitted considering updating the specific deduction in the State Budget for 2025 (OE2025), as a way of reducing the IRS "of those who work".
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Economia OE2025
"The update of the specific deduction is an instrument, and it is an instrument that may be considered when the 2025 Budget is being prepared, together with the reduction of rates, in order to reduce the IRS of those who work", stated the minister.
Miranda Sarmento was speaking in the parliamentary debate on the Government's proposal that provides for a reduction of IRS rates up to the 8th bracket, in response to a question from the leader of the PCP parliamentary group, Paula Santos.
In addition to the Government's proposal, the plenary is today debating initiatives for the reduction of IRS presented by the various opposition parties, which include different solutions for the reduction of rates levied on income brackets, as well as the update of the specific deduction and even the reinforcement of deductions with housing.
The specific deduction has been frozen since 2015 at 4,104 euros -- and for salaries in which the discounts for Social Security or equivalent are higher, this amount is considered -- with the PCP and the BE proposing an increase in these 4,104 euros.
During the debate, Miranda Sarmento was also asked about the moment in which he will move forward with the reformulation of the Young IRS and the salary bonus (IRS exemption and contributions of a bonus equivalent to a 15th month), but the minister only said that the measures are included in the Government's programme for 2025 and that the executive will try "to make it as fast as possible and within the budgetary margin" that they have available.
[News updated at 5:24 pm]
Read Also: "Nenhuma promessa feita no programa da AD deixará de ser cumprida" (Portuguese version)
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