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IRS measures cut revenue by €3 billion until 2028
The Government estimates that by the end of the legislature, until 2028, the State will collect 3,000 million euros less in IRS revenue as a result of the measures it intends to implement under this tax.
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Economia IRS
The amount includes the 1 billion euros that the AD electoral program includes within the scope of the Young IRS model that it intends to create (and which differs from the current one), not taking into account the impact of the measures implemented by the previous executive, in the State Budget for 2024 (OE2024), according to an official government source.
Removing the 1 billion euros from the Young IRS equation, the 2 billion euros in question, the same government source specified, encompass the impact attributed to the reduction in IRS rates approved today (which in 2024 is 348 million euros, compared to the model in force since the beginning of the year, and 115 million euros next year, following the settlement of the tax).
The reduction in revenue by 2 billion euros in the referred horizon also includes the exemption of productivity bonuses (known as the 15th month), tax incentives for savings, and may also include future reductions in IRS rates if there is room for it, the same source said.
In the electoral program, the AD pointed to measures of "exemption from contributions and IRS on performance bonuses and reduction of IRS marginal rates up to the 8th bracket between 0.5 and 3 percentage points compared to 2023", accounting for its value at 2 billion euros, however the same government source guarantees that the amount excludes measures included in the OE2024.
Read Also: IRS reduction? It's €1.25 for a salary of €950 and €46 for a salary of €7,500 (Portuguese version)
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