“Cruel tax increases” sparked accusations between the SDP and the government

On Tuesday, the PSD used a phrase from former finance minister Passos Coelho to accuse the PS of “brutal tax increases” in this budget, a charge returned by the government that generated one of the most heated moments of the debate.

“The Portuguese will witness brutal tax increases,” stressed Madeira PSD deputy Dinis Ramos during the debate on the state budget 2024 (OE2024), which began this Tuesday, the fourth day, pointing to an increase in “indirect taxes”. in the budget proposal of the socialist government.

In response, Finance Minister Nuno Santos Felix “picked up” this accusation and said that he knows well what cruel tax increases are: “I am 37 years old, my generation knows what cruel tax increases are. tax increases.”

Nuno Santos Félix’s reaction drew strong protest from the right benches, forcing him to pause and take the opportunity to repeat that the generations before him also “know well what the pension drama was.”

The debate on the proposals put forward in Tuesday’s plenary session (all about taxes) was accompanied by several exchanges of accusations between the opposition and the PS, as well as between left and right, namely regarding the tax burden and the level of taxation, with votes confirming the previous day’s vote, in Budget and Finance Committee.

The session began with PSD defending its proposal, which would provide an exemption from IRS taxes and Social Security rebates on premiums paid to employees, and appealing to the “PS acumen” to make the measure viable.

After listening to liberal João Cotrim Figueiredo boasting of his “patience” for continuing to appeal to the clarity of the PS and mentioning that for IL the level of tax burden is as serious as the complexity of the system, PSD deputy Afonso Oliveira noted that the agreement of both parties on this issue.

The harmony demonstrated by PSD and IL may be disrupted by José Soeiro of BE, emphasizing that the PSD proposal “enjoys the sympathy of the employers’ confederations” and “is a wolf in sheep’s clothing” because, by exempting social security discounts from premiums, it reduces their base and social worker protection.

“Here we have the example of the largest panel in parliament – the CIP Chamber. [Confederação Empresarial de Portugal]“, said Duarte Alves of the PCP, stressing that he belongs to the “PSD brand”, which is “an attack on pensions”.

Andre Ventura criticized the Socialist Party and left-wing parties for filling “the country with taxes” and refusing to support a proposal that reduces them.

Among the proposals put forward were IRS Jovem and support for students, as well as changes to the tax regime for non-permanent residents (RNH), with the opposition taking the opportunity to criticize the government’s measures.

“What PS offers is what is already called the card discount modality,” said BE MP Joana Mortagua, alluding to “discounts” on housing “that does not exist” or refunds of tuition fees for each year of work in Portugal. when the challenge for many families “is paying for tuition now.”

Livre’s Rui Tavares stressed the need to ensure the country could not “continue to be stuck in a low wage trap”, pointing to data from international organizations on the tax burden.

This reference prompted the President of the Assembly of the Republic to make a “slight correction” to the words of Rui Tavares, noting that the tax burden in Portugal is even lower than the European Union average.

A moment used by Ventura to note that the President of the Assembly of the Republic does not have the right to “enter into debate.”

Debate and voting on the OE2024 specialty has reached its final stage, with the final global vote on the document scheduled for Wednesday.