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Government "stunned" with IRS success on pensions paid in April
The government today expressed "astonishment" at the agreement for withholding tax on April and May pensions, stating that this results "exclusively from the political orientation" of the previous socialist executive.
© Lusa
Economia Ministério do Trabalho
This position is part of a statement from the Ministry of Labour, Solidarity and Social Security, which emphasizes that this situation is a result of the decision in January 2024 to "give an artificial impression of an increase to pensioners with less IRS withholding, in order to make this adjustment after the elections, during the transition period".
The Social Security Institute (ISS) clarified today that adjustments were made to the IRS withholding of April and May pensions in order to correct the withholding made in January based on a "provisional" table for 328 thousand pensioners.
This clarification came after the newspaper Jornal de Negócios reported the case of pensioners who were faced with a reduction in the net value of their pension paid in May, without the receipt providing an explanation for this fact - since the gross value of the pension remained the same, as did the tax withholding rate, but not the amount of the discount.
In the statement, the Ministry of Labour says that it was "with astonishment that the Government became aware that the Social Security Institute had made an adjustment to the value of pensions paid in April, due to the change in the IRS withholding tables".
This measure, it adds, "processed in mid-March (after the elections) and implemented on April 11 and 12, is the exclusive result of a political directive from the Socialist Party Government, of which the current Government had no prior knowledge".
The office of Minister Maria do Rosário Ramalho emphasizes that the astonishment at the information, due to its "obvious" relevance in the lives of pensioners, is compounded by the fact that the issue was never communicated to the new executive.
"The decision of the previous Government was not mentioned at any time during the transition meeting with the current Minister of Labour, Solidarity and Social Security, nor was it signalled at any level to the current Government before it was implemented", states the statement.
In addition, it adds, Maria do Rosário Ramalho and her Secretary of State for Social Security received the president of the Social Security Institute on April 22 and "she said nothing about the issue".
In the information released today, the ISS specified that the group of 328 thousand pensioners includes the return of excess IRS withheld to 184 thousand pensioners and the adjustment of the amount withheld from 143,800 pensioners.
Read also: IRS. Tax Authorities do not charge amounts less than €25 and do not refund less than €10 (Portuguese version)
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