Sufficient numbers make PS’s IRS cut proposal viable

The PS proposal to reduce IRS rates to level 6, but maintain rates for subsequent levels, was approved this Wednesday in Parliament. The new fee table was approved by the PSD and SDS-PP, who voted against, Chega abstained, and the other parties voted in favor.

The votes against PS, PCP, BE, Livre and Chegi’s abstention determined the lead in the new IRS rate table proposed by PSD and CDS-PP.

This is a vote on a text that will replace the tariff reduction proposal originally sent by the government to parliament and which is being passed in the Committee on Budget, Finance and Public Administration (COFAP).

Most of the remaining items in the replacement proposals submitted by pro-government parties were approved in a committee vote.

PSD’s Hugo Carneiro accused Chegu of “inconsistency” and said the PS never wanted “any agreement.” CDS’s Paulo Nunzio joked: “This is invention at its finest.”

The two parties supporting the government introduced text replacing the executive’s proposal to cut the IRS, which retains the cuts to that tax in the sixth, seventh and eighth brackets, albeit in the sixth bracket with a smaller reduction than what the government had originally intended.

The marginal rate currently in force for income tax bands 6, 7 and 8 is 37%, 43.5% and 45%, respectively. The proposed PSD change indicates rates in the same order: 35%, 43% and 44.75%. The government’s original proposal was 34% for the sixth bracket and was identical to the replacement text proposal for the others.

The Commission will now continue voting on the IRS amendment projects submitted by the opposition parties, namely PS, BE and PCP, as well as discussion on the Chegi project, which reached the specialty without a general vote.