Pedro Nuno criticizes ‘residual benefits’ from tax breaks that boost revenue

PS Secretary General Pedro Nuno Santos this Friday criticized the PSD/CDS tax breaks for being only “residual profits” and benefiting “those with higher incomes,” believing that they are now a “gimmick” of the government.

“Talking about hope and ambition, this is something that we did not see in the proposal presented to us. We will still have to analyze it in more detail, because everything that comes from this government requires great care and a lot of work. Be careful not to be deceived,” the PS leader responded to reporters regarding the tax incentive proposal approved today by the Council of Ministers.

Upon arrival in Largo do Rato for the PS 51st anniversary luncheon, Pedro Nuno said that “on a first quick assessment, it is clear that the benefits that the Portuguese will receive from the PSD proposal are residual benefits.”

“In reality, in real life, every Portuguese person’s monthly income is a few euros,” he said.

According to Pedro Nuno Santos, “today we understand better why the AD government tried to pull off a trick by including in its measure” what was already in place in the state budget approved by the former socialist chief executive.

“This is because his proposal did not include any major financial relief,” he criticized, insisting that “the monthly benefit that the Portuguese will receive from the AD government’s measures is very small.”

Another criticism of the PS general secretary is that “those with higher incomes will benefit the most from this proposal.”

“And this is a very important issue, because we need to build a fairer and more positive Portugal. Our concern for the reform, which is included in the state budget, is to give preference to workers who earn less, and these are two different visions of Portuguese society,” he said. accused.

Pedro Nuno noted that while the executive talks about the middle class, “in reality, the small tax savings he gets are larger for those at the top.”

Prime Minister Luis Montenegro announced today that the IRS rate cut will apply to all income received from January 1, 2024.

“All the measures that we apply in terms of rate cuts will apply to all incomes from 2024,” assured the leader of the executive branch at a press conference in São Bento, Lisbon, after a meeting of the Council of Ministers.

Luis Montenegro explained that “retroactivity – which may be a misnomer from a legal point of view – takes place in practice for all income that families and Portuguese people may have received since January 1, 2024.”

This Friday, the Council of Ministers approved the proposal to reduce IRS rates to level 8, indicating that this measure represents a total tax reduction of 1.539 million euros compared to 2023.

Luis Montenegro said that the additional reduction in marginal rates will apply to all groups up to 8th.

According to the government presentation, the cumulative decline will be more than three percentage points (pp) in grades 2 and 3, 3 pp. between 4th and 6th grades and 0.5 and 0.25 p.p. in 7th and 8th grades.