Of the various proposals that contemplate changes to the IRS presented by the various opposition parties and that were debated today and subject to a vote in general, only those subscribed to by Livre and PAN were rejected.

Before the votes, the PSD announced its intention to submit a request for the Government's proposal, which reduces IRS rates, to be passed to the committee without a vote for 15 days, which ended up being accepted by the majority of the deputies, with the initiative being approved with the abstention of Livre and BE and the favorable vote of the remaining parties.

The passage to the specialty without a vote also ended up being the solution chosen by Chega and IL (for 60 and 15 days, respectively), with the requests of both parties being made viable by the favorable vote of all parties, except for BE who abstained.

After a debate in which the opposition's accusations about the IRS reduction proposed by the Government were heard again, the deputies approved the PS project that defends more significant reductions in IRS rates on the lowest income brackets (between 1,000 and 2,500 gross euros per month).

The initiative was approved with the favorable vote of PS, BE, PCP, PAN and Livre, the abstention of Chega and IL and the vote against of PSD and CDS-PP.

The Bloco de Esquerda projects were made viable with the favorable votes of the proposer, PS, IL, PCP, Livre and PAN, while Chega abstained and PSD and CDS-PP voted against.

The Bloquistas propose increasing the value of specific deductions (on work and pensions) and the deduction of real estate expenses to 360 euros, as well as eliminating the rule that prevents people with home loans taken out after 2011 from benefiting from this deduction.

The PCP project, on the other hand, had the favorable vote of PS, BE, PAN, PCP and Livre, the abstention of IL and Chega and votes against from the parties that support the Government.

The communists' initiative insists on the mandatory inclusion of income subject to special and withholding taxes, such as income, capital gains or interest, for those in the top bracket of the brackets, also proposing an increase in the specific deduction and its update based on the IAS, the reduction of the rates that affect the first two brackets and the increase of those that affect the highest income brackets. A new bracket is also created for incomes above 250 thousand euros per year, with a rate of 56%.

The Government's proposal, which now goes to the specialty, provides for an additional reduction of between 0.25 and 3 percentage points in the rates that affect the 1st to 8th income brackets, with the most significant reduction (3 percentage points) affecting the 6th bracket. In the 9th bracket, the rate remains unchanged.

According to the Government's accounts, this reduction translates into an additional tax relief of 348 million euros this year compared to what has been in force since January, to which a reduction of 115 million euros will be added in 2025, through the IRS refund.

The Chega project, on the other hand, proposes a more substantial reduction in tax rates up to the 8th bracket -- leaving only the 9th unchanged, which corresponds to the highest income bracket.

The Iniciativa Liberal proposes increasing the specific deduction (the 'discount' that is automatically attributed to income from work and pensions), reducing tax rates (considering only two levels) and sets the minimum existence at the value equivalent to 14 national minimum wages to the current value (820 euros).

The Livre project (which proposed a reduction in IRS rates in the lower brackets and an increase in the one that affects the highest) and the PAN project (aiming at an emergency tax program) were rejected.

[News updated at 8:09 pm]

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