Miranda Sarmento does not refuse rate reductions at all proposed levels

The Minister of Finance this Thursday guaranteed openness to dialogue regarding the IRS, but does not refuse to reduce all levels up to the 8th and admitted that the relief will only apply in July or September.

At a parliamentary hearing in the Committee on Budget, Finance and Public Administration (COFAP) at the request of Chega regarding the controversy surrounding the IRS cuts announced by the executive branch led by Luis Montenegro, Joaquim Miranda Sarmento today called on the parties to reach an understanding on the IRS proposals that are being discussed in the specialty. “as fast as possible”.

“The longer this understanding takes, the more difficult it will be for the Republic to apply income tax tables in July. But if not in July, then it could be in August or September so that the Portuguese can feel additional relief.” in the tax service,” he said.

The official stressed that the SDP and SDS, two parties supporting the executive branch, presented a new proposal, which “obviously the government follows.”

The Minister of Supervision emphasized that the proposal “has a principle that is to cover all levels except the last one.”

“It is true that when you reduce a band, the progressive effect of the tax affects all the bands above it, so I would say it is very difficult to lower a band without getting more benefit in euros from the bands above,” he said. noted, however, while defending that this proposal is beneficial to the lower ranks.

Miranda Sarmento believed that “it is important to continue the rate cuts in the first five groups, but also to reduce the rate in the 6th group, and then the reduction, which is much smaller, in the 7th and 8th groups”, indicating that the 6th group The group covers a monthly net income of 1300 to 1800 euros.

“This is the principle of our proposal. It can be changed, it can be changed, but there is a principle that must be maintained, and that is that at all levels the marginal rates must be reduced.”

The government proposed reducing rates by 0.25–3 percentage points up to the 8th income level, with the largest reduction (3 and 1.25 points) affecting the 6th and 8th income levels, respectively.

However, the SDP has made a proposal in this area, which provides for an additional reduction of 0.5 percentage points in the rates applied to the 3rd and 4th income groups, which thus increase to 22% and 25% respectively, i.e. , how and what the PS protects.

As for the 6th group, PSD argues that the rate should be reduced to 35%, one percentage point less than what the government proposed, with changes in this income group, corresponding to a gross salary of approximately 2,200 to 3,100 euros. — caused sharp criticism of the PS, which advocates maintaining the rate at this level (36.5%).

With this project, the PSD is also moving closer to the tax scheme advocated by Chega, although the party led by André Ventura advocates sharper rate cuts for band 6 (to 32%) and band 5 (to 31.5%). .