Prime Minister Luis Montenegro announced on Friday “a reduction in IRS income rates to the eighth pillar, which will lead to an overall reduction in labor taxes in Portugal of approximately 1,500 million euros compared to 2023,” the government said in a statement. released this Saturday.
The government guarantees it has been “strict and loyal” to the Portuguese and says the IRS cuts are “always and consistently the same”.
“The government and the prime minister were strict and loyal to the Portuguese. In its attitude and in fulfilling its obligations, which include cutting the IRS in three ways: the reduction in marginal rates, which now materializes in accordance with the terms always proposed; as well as IRS Jovem (up to 15%, except the last step) and tax-exempt performance bonuses that are approved in a timely manner,” can be read in the document.
He also says that Montenegro’s claim is “factually true and undeniable” and is consistent with what is contained in the government program: “Lowering IRS taxpayers to level 8 by reducing marginal rates by 0.5 to 3 percentage points compared to 2023 year.” “, as well as the Electoral Program of the Democratic Alliance.
“No member of the government or the coalition parties supporting it has ever proposed, indicated or allowed other rate cuts. The government is strictly complying with the proposal it has made to the Portuguese people for eight months and repeatedly during the election campaign,” it said.
The government says it is a “serious mistake” that some policymakers have made mistakes on other rate cuts that are “very different or even stronger.” This stronger reduction “would be completely inconsistent with what the Prime Minister said in Parliament and with the government programme” because instead of 1,500 million euros “compared to last year”, the effect would be 2,600 million euros.
“This has never been said or suggested by the Prime Minister or the government,” the government says.