About 90% of companies want a general reduction in taxes and energy taxation.

About 90% of companies are in favor of a general tax cut in the state budget for 2023 (OE2023), namely autonomous taxation and energy taxation, as well as international agreements to attract skilled labor.

According to the October edition of a survey conducted by the Portuguese Business Association (AEP) among 1070 member companies from across the country and from various sectors of activity, and which this month focused on OE2023, IRC (income taxes) legal entities), “about 90% consider “important” and “very important” a general reduction in taxes, especially autonomous taxation. This is followed by a reduction in the premium and an increase in tax incentives.

At the IRS, “nearly all companies consider it ‘important’ or ‘very important’ to cut rates and adjust scales.”

In energy, “more than 90% of companies consider it “important” or “very important” to reduce taxation and eliminate ISPs. [Imposto sobre Produtos Petrolíferos]” and “more than 95% say it is “important” or “very important” to support energy efficient and energy intensive companies.

In terms of the labor market, “nearly 90% of companies consider international agreements to attract skilled labor to be ‘important’ or ‘very important’, followed by about 85% of the link between wages and productivity and reducing the tax burden on labor.”

For AEP President Luis Miguel Ribeiro, the results of this survey “well reflect the concerns of companies and the measures they consider important to include in the state budget for 2023 and confirm the warnings” of the association.

“This is a proposal with little determination to structurally reduce the tax burden on companies and on human resources, especially on the most qualified, important factors for increasing productivity and competitiveness, and retaining and attracting talent,” he argues. reducing the labor tax is the best way to increase the net disposable income of families and support domestic demand due to the importance of private consumption in the evolution of GDP, given the dominant weight of this component (64%).”

The AEP survey also shows, in terms of business size and scale growth, that “98% of companies consider it ‘important’ or ‘very important’ to increase tax and financial incentives for M&A.”

With regard to European funds, “almost all companies consider it necessary to cut bureaucracy, and 95% consider it “important” or “very important” to support PT2030 for reindustrialization and support for BPF. [Banco Português de Fomento]”.

In the context of government reform, the association highlights the “unanimity” of respondents regarding the importance of the speed of justice”, also highlighting that “the vast majority of companies consider it “important” or “very important” to improve the legislative process and digitize public services.”

Other measures that companies say should be included in the OE2023 proposal are lower VAT and social security rates, exemption from tax on retained earnings (held in companies to increase equity) and the creation of a taxpayer current account. with a combination of various taxes.

Also mentioned is the abolition of the obligation to print a simplified invoice or equivalent document when adding a tax number, the action “on the non-compliance of the absence of unskilled labor when there are persons receiving unemployment benefits”, and the decrease and increase in the control of social support, namely in the allowance for unemployment.

Tougher penalties for tax and financial fraud, streamlining justice and licensing, flexibility in labor laws, and the availability of investment funds “for all companies, not just SMEs.” [pequenas e médias empresas]”Other measures are needed.