The Lisbon City Council this Wednesday failed, as the opposition voted against, the proposal of the coalition “Novos Tempos” (PSD/CDS-PP/MPT/PPM/Aliança) to exempt young people from the municipal tax on the burdensome transfer of real estate. (BMI).
The proposal, which would have exempted young people under 35 from IMT who bought a house in Lisbon worth up to 300 thousand euros, was rejected by votes in favor of the PSD and CDS-PP and against by the PS. PCP, Citizens for Lisbon (elected by the PS/Livre coalition), Livre and BE.
This is the third time the Novos Tempos coalition has introduced this proposal.
The vote took place in a closed meeting of the executive led by Social Democrat Carlos Moedas as part of a daylong discussion of the 2024 municipal budget.
The PS also submitted a proposal for exemption from IMT, but it was never discussed.
The Socialists’ proposal proposed, as an alternative to exempting young people from the BMI tax, a complete exemption from tax on the purchase of housing, buildings or land for construction that is allocated to the municipal Affordable Income program.
Following the meeting, in statements to Lusa, Lisbon City Council President Carlos Moedas (PSD) expressed regret over the failure of the IMT tax exemption proposal, assuring that the Novos Tempos coalition will not give up. as.
“I have some sadness. On the one hand, we invest for all those who do not have money, for those who find it difficult to pay rent, but then we do not give the opportunity to anyone to buy until they are 35 years old. years,” he said.
The mayor said he will continue to push for the measure because “it’s important for the city.”
When asked about the alternative proposal from the IMT PS, Carlos Moedas admitted that he could not “understand the essence” of the proposal.
“This was a proposal to abolish or exempt from IMT people who had invested in buying houses and then invested in affordable rentals or land. In other words, the incentive was not for young people, but for investors. That’s why I didn’t understand it. very good,” he said.
On the other hand, regarding taxes, the Lisbon City Council discussed and approved a proposal to return 4.5% to the IRS (personal income tax).
The proposal was approved by votes for the Novos Tempos coalition, abstentions by the PS and votes against the PKP, Cidadaos Por Lisboa, Livre and BE.
“I emphasize that we are already returning 4.5% to the residents of Lisbon in the form of the IRS. So that was another percentage point. We will reach 2025 and return all the IRS that could come to the city council,” Carlos Moedas emphasized.
The Lisbon City Council approved by a majority vote this Wednesday a municipal budget for 2024 worth 1.3 billion euros, with housing as its top priority.
The document, which was voted on point by point, received votes against the PCP, Cidadaãos Por Lisboa (elected by the PS/Livre coalition), Livre and BE.
The PS voted for some items and abstained on others, making the 2024 municipal budget viable.
Currently, the 17-member executive body of the Lisbon Chamber includes seven elected members of the Novos Tempos coalition – the only ones with responsibilities – three from the PS, two from the PCP, three from Cidadaos Por Lisbon (elected by the PS/ Livre), one from Livre and one from BE.