Uncertain tax relief. Voting on proposals to change IRS rates postponed

The PSD’s proposal might not even garner support from the right. Chega, for example, even admitted to making the PS project viable.

Approved by the Council of Ministers last week, the Government’s proposal involves a reduction in rates of between 0.25 and 3 percentage points up to the eighth income bracket – the most pronounced reductions, of three and 1.25 points, cover the sixth and eighth income brackets, respectively.Several sources heard by public radio confirmed the postponement of the vote.

The PS accuses Luís Montenegro’s Executive of applying the so-called tax relief, amounting to 348 million euros this year, on the highest incomes. The socialists therefore submit an amendment proposal that favors the lower levels.

“What you will find in the bill is greater redistribution, greater relief for incomes between one thousand and 2,500 euros”maintained the PS parliamentary leader, Alexandra Leitão.

The Liberal Initiative proposes increasing the specific deduction, reducing IRS rates and setting the minimum subsistence minimum at the equivalent of 14 national minimum wages, at the current value of 820 euros.

In turn, the Left Bloc presents a bill that increases the value of specific deductions and the deduction of property charges to 360 euros. Mariana Mortágua’s party also proposes the suppression of the rule that prevents holders of housing loans taken out after 2011 from benefiting from the deduction.

The communists want the mandatory inclusion of income subject to special and liberating rates – rents, capital gains or interest – to the top of the echelons. They also propose an increase in the specific deduction, a reduction in rates on the first two brackets and an increase in those that apply to higher income brackets.

Livre’s proposal, which focuses on IRS rates, advocates one in the lowest brackets, the increase, from 48 to 49 percent, of the rate on the ninth bracket and the change in income value limits for each income level..

The PAN project advocates a fiscal emergency program that provides for “a mid-term update of IRS levelsthe extension of the IRS Jovem regime and the reinstatement of the zero VAT regime on food products in the essential basket”.

w/ Lusa