BE wants IMT revenues to go into the national municipal fund

This Sunday, the BE Coordinator proposed that the municipal onerous property transfer tax (IMT) be channeled into the national municipal fund for redistribution according to territorial cohesion criteria, thereby putting an end to real estate speculation.

“We propose to separate municipal revenues from speculation, we propose to channel BMI revenues into a national municipal fund that redistributes them according to criteria of territorial cohesion, definitively breaking the link between municipal speculation and revenues,” said Mariana Mortagua at the conclusion of the European Seminar on Housing , organized by the European Left and BE, in Porto.

Stating that it was “a proposal for the future and that it could be crucial for housing development in Portugal”, the blocker said local authorities could not be influenced and should have no incentive to encourage property speculation.

And he added: “This proposal will finally put an end to this vicious connection, which makes the encouragement of speculation an autarchic policy.”

In his opinion, BMI revenues can and should serve local housing policies, and there is a need to put an end to this “regime agreement that exists in Portugal, involving the central government and local authorities of all stripes, which amounts to real estate speculation.” .

Cities and towns should serve the residents and communities that inhabit them, “not be a collection of monopoly pieces in a game competing for profits from speculation,” he said.

“Over the past 10 years, IMT revenues have grown by 336%. And who benefited from this? on the contrary, this enthusiasm on the part of the government and local authorities about rising house prices became policy, it became a source of pride for political decision makers and that is why they fought like lions to maintain golden visas and increase local housing to attract buyers, investors and foreign speculators,” emphasized Mariana Mortagua.

According to the BE coordinator, not only is 40% of IMT’s revenues concentrated in the Lisbon district, but all other revenues are concentrated in coastal municipalities, where “speculation, housing shortages and environmental attacks are intolerable rules that make people’s lives difficult.” those who want to live in these municipalities.”

The rules for the distribution of IMT revenues are “a reward for speculation and the nail of territorial unity,” he concluded.

Tax revenues continue to make up the largest portion of municipal revenues, weighing more than 35%. In 2022, there was a very significant increase in the collection of PUM.

“IMT continued to grow and increased by approximately 26.1%, meaning it increased globally by approximately €351 million. Thus, there is indeed a significant increase in IMT, and this important note exceeds IMI for the first time. income,” said the coordinator of the Financial Yearbook of Portuguese Municipalities, emphasizing that these results demonstrate the impact on municipal accounts of the phenomenon of rising property prices.