PS argues that its proposed tax breaks are fairer and reach more people.

Socialist parliamentary leader Alexandra Leitan said on Tuesday that the PS tax cut proposal “has more fiscal equity, is more redistributive and reaches more people” than the executive’s proposal.

“In the bill you will find greater redistribution, greater benefits for incomes from 1,000 to 2,500 euros,” Alexandra Leitan said at a press conference in parliament.

The Socialist Party’s parliamentary leader says her party is making a “much fairer” use of the €348 million margin the government presented in its tax relief bill, ensuring the Socialists’ proposal “has more fiscal equity, is more redistributive and reaches more people.” “

Asked about the statements of Prime Minister Luis Montenegro, who the day before said that the PS’s way of cutting the IRS gave “an absolutely wrong signal” by excluding from consideration those who earned more than 1,300 euros, Alexandra Leitão began with the answer: I did not hear them and that’s why I wouldn’t comment on them.

“The bill that has now been presented exactly corresponds to the change made by the Government of the PS to the 2024 budget, that is, to make greater relief for incomes of the 2nd, 3rd, 4th and 5th groups and to make smaller reliefs in the 6th. I and the 7th group precisely in order to reach more people and people with incomes that are not just the lowest, we now reach 2,500 euros and therefore incomes that can be considered average in Portugal,” he emphasized.

The Socialist believed that the limit determined by the government of Luis Montenegro “falls far short of the volume of measures adopted by the PS government in the state budget for 2024” and accused the government of “deceiving the expectations created by the AD itself during the campaign” and that it makes a choice, which PS is not considering.

In the draft amendment to the PS, the Socialists keep the rate for the first income group at 13%, but advocate a larger reduction (from 0.5 to 1.0 percentage points) in the next three groups.

“Taking into account the budgetary margin established by the AD government, the Socialist Party, with this proposal, guarantees households with incomes between the 2nd and 4th group, which constitute 1/3 of the total number of households, a tax reduction of more than half. this follows from the government’s proposal,” he says.

The Socialists also guarantee that their proposed amendment will reduce “the tax burden in bands 5 and 6, where about 10% of the total number of households are located”, remembering that “higher groups benefit from the effect of reduced rates on lower groups” . tiers.”