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IRS reduction depends on the "speed" with which Parliament "approves"
The Minister of Finance said today that the implementation of the IRS tax relief proposed by the Government depends on the speed with which parliament approves it, specifying that the proposals of some parties would put Portugal in a deficit situation.
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Política Miranda Sarmento
"[...] The Government is moving forward with a measure that will allow a significant reduction in IRS", said the Minister of Finance, Miranda Sarmento, stating that it is "an additional relief" compared to what is already in force, of around 350 million euros.
The measure will start to be applied through the reduction of withholding tax, with retroactive effects from January, said Miranda Sarmento, emphasising that the moment when taxpayers will feel this tax relief in the IRS depends "on the speed with which this parliament approves the measure".
In addition to the Government's proposal, which reduces IRS rates up to the 8th income bracket, parliament is today debating bills on the same tax presented by all opposition parties, but with reductions in rates in the various brackets different from those proposed by the Government. Others also change the specific deduction.
Miranda Sarmento stated that some of the opposition's proposals, due to the loss of revenue they imply, would put the public accounts in a budget deficit situation, arguing that it is not possible to "take a step bigger than the leg" and that "tax reduction must be done with budgetary responsibility".
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