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When will the IRS reduction last? Discover all the scenarios. The diploma is in the hands of the President of the Republic.

The IRS reduction diploma, approved by the Assembly of the Republic, is in the hands of the President of the Republic, Marcelo Rebelo de Sousa, and there are several open scenarios regarding the date of its possible entry into force and the possible impact on the withholding tables at source this year.

The IRS reduction proposed by the PS and made possible by the parliament determines a tax reduction of 0.25-1.5% to the sixth category compared to the current table. According to the parliamentary services, the diploma does not violate the law on brakes, but the government expects the head of state to send it to the Constitutional Court.

In an interview with the magazine in June Business And Antenna 1The President’s Minister António Leitão Amaro considered the insistence of the PS to publish income tax tables, which already this year reflect the impact of the IRS rate cuts, “clearly different from what the law on brakes says” and an argument in favor of the unconstitutionality of the diploma.

Finance Minister Joaquim Miranda Sarmento supported this thesis this Wednesday at a regulatory hearing of the Committee on Budget, Finance and Public Administration.

And Deputy Minister of Cohesion Manuel Castro Almeida recently said that “Parliament should not impose a financial burden on the government against its will this year.” In an interview with To expressA government official suggested that this year’s IRS cut was a “commitment” that was “no longer valid.”

Parliamentary services sent the diploma to the president of the republic on July 3. The period during which the head of state can initiate a preventive review of the constitutionality of the diploma is eight days, counting continuously from the moment it was received. Thus, it should have ended on Thursday, but, with contact CMThe President of the Republic did not specify whether Marcelo Rebelo de Sousa actually received his diploma on July 3.

If the President of the Republic decides to refer the diploma to the Constitutional Court, that body could take a maximum of two months to rule on its constitutionality, with a possible change in the income tax tables expected to occur in the last three months of the year.

A period of 20 days has been set for the publication or political veto of the diploma. In principle, the income tax tables can be changed already in August if they are published, if the government decides to act in this direction after assessing the impact on public accounts. In turn, if the head of state politically vetoes the reduction of the IRS, Parliament is given the opportunity to confirm this by a new vote.

What is certain is that in the proposal for the Grand Options Plan (2024-2028) sent to Parliament, the executive ignored the IRS cuts approved by the Assembly of the Republic and insisted on reducing the tax to the eighth bracket, by reducing marginal rates by 0.5 to 3% compared to 2023, with a focus on the middle class.

“There is no law in force in any other sense,” Leitan Amaru said of the demand at the end of the last Council of Ministers meeting.

Author: Miguel Bravo Morais This Sara Reis Teixeira
Source: CM Jornal

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