PCP proposed this Monday to reduce IRS first and second tier rates by 12.5% and 17% and increase taxation on capital and asset income, advocating for “greater tax fairness.”
At a press conference in parliament, PCP parliamentary leader Paula Santos acknowledged that “there are additional taxes”, but emphasized that these additional taxes “are applied to income from labor and micro, small and medium-sized companies”, since “there are even fewer taxes on capital”.
Therefore, he continued, the PKP decided this Monday to present a bill that immediately intends to “introduce greater financial fairness” and which will be discussed this Wednesday in Parliament, together with the government’s proposed legislation on this issue.
According to Paula Santos, the PCP diploma aims to introduce “tax benefits for low and intermediate incomes” and at the same time increase government revenue “by increasing the taxation of capital and asset income.”
To achieve this, PCP proposes to reduce IRS rates for the first and second levels by 12.5% and 17%, respectively, which, according to Paula Santos, will have a “positive impact on all IRS levels, especially on the income levels immediately below them.”
Along with this proposal, the party also proposes to increase the size of the special deduction from the current 4,104 euros to 5,208, which would amount to “an additional 1,100 euros deducted from the tax base.”
“The renewal of the special deduction is an element of greater tax fairness, since its impact is mainly felt on the lowest and intermediate incomes, namely up to and including level 6,” he explained.
Paula Santos said that the impact of these two measures is “greater than that proposed by the government up to level 6,” highlighting that with a PCP diploma, a person with a gross monthly income of one thousand euros will pay an annual tax. benefit of €266.70 – down from €30.22 – and someone earning a salary of €2,500 would have an annual cut of €503.97, down from €243.54 proposed by the executive.
“This means that with this proposal, what we are proposing has a more significant impact on low and middle incomes than the proposal presented by the government,” he stressed.
The PKP parliamentary leader also said that the party’s proposal offers “another advantage”, namely the fact that it brings “greater fiscal equity with a positive impact on government revenues.”
“Therefore, we propose to increase the rate in the 9th group. “We are talking about taxable income exceeding 81 thousand euros, with a rate of 53.5%, as well as the creation of a 10th IRS group, for income exceeding 250 thousand euros, with a rate of 56%,” he emphasized.
The PKP also wants the abolition of the regime for unusual residents and the mandatory inclusion of income from capital and assets from 81 thousand euros, that is, from the 9th group.
Paula Santos stressed that with this proposal, which “objectively reduces the IRS for people with low and middle incomes by introducing tax fairness criteria,” the PCP will enter into confrontation with the government and other parties.
“We’ll see who actually agrees with greater tax fairness and who is intent on exacerbating tax injustice as a maneuver to cut taxes on big companies,” he said.
The PKP parliamentary leader said the government’s IRS proposal “is part of a strategy to curb and even prevent wage increases.”
“Posing changes to the IRS as a condition for improving workers’ lives is a farce. Of course, there will not be benefits of about five euros per month for incomes in the region of a thousand euros, which will change these living conditions,” he said, arguing that salaries need to be increased.
According to Paula Santos, the executive’s proposal “primarily serves to pave the way and justify the reduction of capital taxes by cutting IRC and surcharges, which almost exclusively favor economic groups, exacerbating financial injustice.”
The deputy also expressed regret that the executive branch did not make any proposals regarding the reduction of indirect taxes, in particular VAT on electricity, communications and gas.
Author: Lusa
Source: CM Jornal
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