Parliament today discusses proposals from the Government and parties to amend the IRS – Economy

The Government’s proposal, approved by the Council of Ministers at the end of last week, includes a reduction in rates of between 0.25 and 3 percentage points up to the 8th income bracket, with the biggest drops (3 and 1.25 points) to affect, respectively, the 6th and 8th income brackets.

The solution displeased the PS, which accused the Government of focusing tax relief (counted at 348 million euros in 2024) on higher incomes, leading the socialists to move forward with a proposed amendment that focuses the most significant part of the relief on levels lower.

“What you will find in the bill is greater redistribution, greater relief for incomes between 1000 and 2500 euros”, defended the parliamentary leader of the PS, Alexandra Leitão, indicating that the socialists’ initiative was designed taking into account the margin budget included in the Government’s proposal.

After the intense debate generated around the way in which the reduction in IRS rates was presented by the Government, today’s debate and vote on the executive’s proposal promises to test the balance of political forces resulting from the March 10 elections.

Without a majority in parliament, the Government’s proposal will have to be able to gather the support of other party forces to be made viable, and the president of Chega has already admitted that his party could vote against the executive’s proposal and make the PS’s viable, claiming which is closest to yours.

The project presented by the PS will also be debated in today’s plenary session, as well as the initiatives of the remaining opposition parties, also within the scope of the IRS.

In the case of Chega, the project also focuses on changing tax rates, proposing a reduction thereof up to the 8th bracket — leaving only the 9th bracket unchanged, which corresponds to the highest income bracket.

The Liberal Initiative is also debating a proposal that increases the specific deduction (the ‘discount’ that is automatically attributed to income from work and pensions), reduces tax rates and sets the minimum subsistence minimum at the equivalent of 14 minimum wages. nationals at the current value (820 euros).

The Left Bloc, for its part, presented a bill that increases the value of specific deductions and the deduction of property charges to 360 euros, also eliminating the rule that prevents people with a home loan taken out after 2011 from benefiting this deduction.

The PCP project insists on the mandatory inclusion of income subject to special and liberatory rates, such as rent, capital gains or interest, for those at the top of the ladder, also proposing the increase in the specific deduction, the reduction of rates that impact on the first two brackets and the worsening of those that affect the highest income brackets.

The Livre project focuses on IRS rates, proposing a reduction in those that apply to the lowest brackets, the increase (from 48% to 49%) of the rate that applies to the 9th bracket, in addition to changing the limits of income value of each income level.

Under debate will also be the PAN project that defends the approval of a fiscal emergency program, “which guarantees an interim update of the IRS levels, the extension of the IRS Jovem regime and the reinstatement of the zero VAT regime on food products from the essential basket”.

After the debate, the various initiatives will be voted on in general.