SDP has already made a proposal to cancel the changes to the MUK

This Thursday, the SDP presented a proposed amendment to the 2024 state budget, which reverses all changes that the government intends to make to the Single Turnover Tax (STT), one of the first from the Social Democratic bench.

In an explanatory note, SDP MPs state that if the changes are implemented, “the government will punish the middle and lower classes, in particular citizens experiencing great economic difficulties and who will find it difficult to purchase new, less polluting environments.” car”.

“If IUC reform of this kind is to be carried out, it must be preceded by research and wide debate, rather than hidden in the public purse,” they argue, criticizing the government for “under the guise of environmental concerns” wanting to “significantly change assumptions on the calculation of taxes and contribute to a sharp increase in IUC” for cars registered between 1981 and June 2007, and for motorcycles registered since 1992.

According to the SDP, the existence of a petition on this issue, already signed by more than 350 thousand citizens, “should be enough to make the government think twice and retreat from its intention to increase the IUC of old cars.”

The deputies state that “for 2024, the government’s proposal has a limit on the increase in the ICC of 25 euros,” but believe that “nothing guarantees that this limit cannot be abolished in the future, which could lead to a disproportionate increase in rates.” tax”.

“And, even if the limit continues to exist, each year the taxpayer will pay €25 more than the previous year until he reaches the new IUC value. Here too, the guarantees given by the government, given the way in which these changes should be continued, are not enough to reassure the Portuguese,” say the deputies.

For this reason, PSD proposes to reverse all changes to the IUC that are present in the OE2024 proposal.

At the opening of the general budget debate on Monday, Prime Minister Antonio Costa accused the opposition of wanting to scare the Portuguese with the IUC, countering that there would be an annual brake that would limit the increase to a maximum of 25 euros.

“Again, like last year, the opposition wants to scare the Portuguese. This time, announcing sky-high increases – in some cases close to 1000% IUC. In a year, everyone will know who told the truth,” he said.

The Prime Minister assured that “every citizen who pays IUC will be able to confirm that he will pay a maximum of an additional 25 euros during 2024.”

“And in the next budget debate we will be here again to see that this €25 increase brake remains in place in 2025, and the same will happen in each of the following years. In other words, in a year again, if you know who is telling the truth and who is just trying to scare the Portuguese,” he said.

This is a measure contained in OE2024 which changes the taxation rules in terms of IUC for vehicles of category A registered before 2007 and motorcycles (category E), determining that they are no longer taxed solely on the basis of cylinder capacity (so as is currently the case) is now seen as an environmental component.

OE2024 was approved on Tuesday with a general vote for the PS and abstentions for the PAN and Livre, and the specific debate began this Thursday, with the deadline for parties to submit proposals for amendments to the document ending on November 14th. .