“Interesting, but not enough”: Chairman of the Order of Architects on the liberation of youth from BMI

The president of the Order of Architects (OA) on Monday considered the IMT exemption for home purchases by young people to be an interesting measure but not enough, and advocated a broader plan for green and inclusive taxation.

“We believe that we cannot lose sight of the fact that [a medida da isenção de IMT para os jovens] “It must be part of a broader tax plan; These are interesting measures, but they are not enough on their own,” defended Avelino Oliveira in a conversation with the Lusa agency.

The decree-law establishing the exemption from the municipal tax on the onerous transfer of property (IMT) and stamp duty on the purchase of the first license by young people under 35 years of age was published in the Diário da República on Friday and comes into force on Thursday.

According to the OA, the answer to the housing crisis involves inclusive green tax measures, such as VAT reductions on construction linked to sustainability parameters and housing benefits for those who need it most.

“The problem with the application of these tax measures is that, because they are universal and equal for everyone, without positive discrimination, they become perverse and ultimately more difficult to apply,” the president said.

The reduction of construction VAT is advocated in the industry and is even a key issue for the OA, even as a way to combat tax evasion.

“It’s money that stays in our economy and money that comes back, and that’s why it seems so important to us,” said Avelino Oliveira.

The OA also protects the deductibility of rehabilitation costs from the IRS and IRC, regardless of whether they are areas classified for that purpose, to encourage the reclassification of existing buildings.

“Intervention in existing buildings should be beneficial, we need the country to focus more on restoring its heritage, the buildings we already have, rather than creating new ones,” the president defended.

Rehabilitation, he stressed, in addition to helping resolve the housing crisis, also helps combat energy poverty in buildings, which, according to Avelino Oliveira, cannot be solved solely through support programs for replacing windows or installing equipment such as heating pumps, and others.

“We think that the big problem of the housing crisis, even though there are state investment measures, can be solved to a greater extent through politics. There are doubts about this,” the president believes, pointing out, in addition to the need for tax and direct incentives, legislative and bureaucratic simplifications.

“Right now, anyone who has a building that needs to be rehabilitated is facing a huge headache” that “is hindering people’s desire to make their assets available to the housing market,” the person in charge explained.

According to the OA, “the whole process, from bureaucracy to licensing itself, financial costs, fees, tax issues and even incentives, must prioritise recovery,” rather than leaving this intervention to the tourist market, which leads to the emptying of urban centres.

“We continue to expand the urban perimeter when we already have cities with all the equipment, with schools, etc., which are then not used as space for citizens. This balance is the biggest problem, and I think that we probably need to urgently review the National Territorial Planning Plan,” emphasized Avelino Oliveira.

In terms of simplifying licensing processes, the OA is one of the organisations working with the government on the revision of Simplex Urbanístico, which is expected to be completed in September.

“Simplex” [Urbanístico] was presented as a panacea, which did not exist and which has already proven itself, because the figures showed that there are fewer licenses, fewer approved projects, and there is a decline in both input and output processes in municipalities,” he said.