PS “fails” all PSD proposals to cut IRS

This Wednesday, the PS rejected all the PSD’s diplomas for cutting the IRS and, of the twelve initiatives of the different parties, approved only one recommendation from Livre, which calls for additional measures to combat tax evasion.

MP and former PSD parliamentary leader Paulo Mota Pinto voted with the bench but announced that he would submit a declaration of vote on all Social Democratic proposals except the one that provides for tax breaks to encourage increased income, productivity.

As a result of the debate in the Assembly of the Republic put by the PSD on the topic “Tax Reduction”, only the Livre draft resolution was approved, which recommends that the executive branch implement measures to combat tax evasion, tax evasion and aggressive behavior. tax planning.

However, following the debate, PS deputy Miguel Cabrita stated that the party would only partially follow this draft resolution (which is just a recommendation that does not have the force of law), delimiting itself at least from the abolition of the tax regime to the unusual residents requested by the Livre, while the panel also announces the voting announcement.

At the end of the debate, the vice-president of the PSD chamber, Hugo Carneiro, had already foreseen the fate of the party’s proposals, rejecting the argument used throughout the discussion by the Social Democratic Party that this discussion should be held in the next state budget.

“We don’t accept your excuses. It is not the government that determines the parliamentary calendar,” he defended, noting that “the Portuguese, especially the middle class, suffer from this ‘leadership’.”

The PSD’s draft resolution to reduce the IRS by €1,200 million in 2023 – by reducing marginal rates in all groups except the last – was rejected only by a vote of PS against, with Chega, PCP, BE and Livre abstaining, and in favor of IL and PAN, in addition to the Social Democrats.

The Social Democrats’ bill to maintain this reduction in 2024 was also rejected with votes against the PS and Livre, abstentions from the PCP and BE and for the rest of the colleges and deputies.

Mandatory updating of IRS levels in line with inflation and creation of a mechanism for Parliament to decide what to do with tax surpluses, reduction of the maximum IRS rate of 15% for young people under 35 and the I.R.S. exemptions and TSU for performance bonuses of up to 6% of annual base remuneration, the remaining PSD initiatives “failed”, always with a PS vote against, joined in the last two by PCP, BE and Livre. accounts.

Chega’s proposal to create a temporary solidarity contribution in the banking sector, the proceeds of which would be used to fund housing support programs, was defeated with only yes votes from the proposer and BE, with no votes from PS, PSD and IL and abstention from rest.

Chega also proposed maintaining the exceptional measures approved by the government in April 2022 to curb rising fuel prices until December 2024, but were rejected only by votes against PS and abstentions from PSD, PCP, PAN and Livre.

The bloc intended to put an end to the regime of non-permanent residents in the tax service, which the PS, SDP, Chege and IL “failed to do.”

The BE bill to update the size of the IRS special deduction by indexing it to the IAS (social assistance index, currently set at €480.43) was defeated with only votes against PS and abstentions from PSD.

The PCP bill, which would have reduced IRS taxation by increasing the amount of the IRS special deduction, reducing the rates of the first three groups by three percentage points, and updating the groups in line with inflation, received votes against PS and SDP and abstentions from Chegi, I.L. and PAN.

The PCP diploma also included a reduction in VAT from 23% to 6% on electricity, natural gas and bottled gas and on telecommunications from 23% to 13%, as well as measures to increase taxation of “large fortunes and profits.” including the abolition of preferential tax treatment provided to non-habitual residents.

PAN planned a mid-term update to IRS levels to “adjust to the effects of inflation”, which was ultimately rejected by PS’s no votes and PSD and Chegi’s abstentions.