The Council of Ministers approved a reduction in IRS rates to level 8. Know all sizes

This Friday, the Council of Ministers approved the reduction of IRS rates to level 8. The Prime Minister announced at a Council of Ministers press conference that there would be “significant cuts to IRS work and pensions with immediate relief from the tax burden”.

Luis Montenegro also ensured that all households would benefit from the IRS cut, especially the middle class. “This is the first stage of tax breaks that we promised the Portuguese,” he assured.

The government estimates that during the legislative period until 2028, the state will collect €3,000 million less in IRS revenue after the measures it intends to take regarding this tax.

The Prime Minister also said that there are conditions for employers to apply the new income tax schedule and that conditions may arise in June/July for it to come into force.

Luis Montenegro said that the government’s proposal for IRS Jovem will be presented “in due course” and that its impact will be 1,200 million euros.

“Our offer [do IRS Jovem] which we will introduce in due course does not allow any discrimination regarding qualifications, (…), it applies to all young people under the age of 35,” Montenegro said, emphasizing that this is a measure “different from one , currently in force”, primarily due to the financial consequences, which amounted to 1,200 million euros.

“The measure is being prepared. We will present this measure soon, which is strategic, and we will present it in due course,” he said.

“We are going to encourage young people to work, we are going to give them a message that Portugal is worth believing in, they don’t have to go abroad to look for opportunities,” he said.

The first stage of a series of measures to reduce the tax burden:

– Reduced IRS rates to level 8.
– Young IRS: Young people under 35 have a 2/3 rate reduction (maximum 15%).
– Tax exemption on performance bonuses (maximum 1 salary)
– Tax incentive for IRS savings and possible additional rate reductions.
– Reduced housing taxation
– Gradual reduction of IRC to 15%

Regarding the development of Operation Influential Man, which led to the resignation of the previous head of government, Luis Montenegro declined to comment, saying that it is “a process that continues.”

“I have nothing to add on this issue. It is a process that is ongoing and we will wait for its development,” Luis Montenegro said at the end of a meeting of the Council of Ministers after being asked whether he believed that the Prosecutor General’s Office should give an explanation in the case .

The work of the previous legislature was interrupted after the resignation of Prime Minister António Costa, after it was revealed that he was the subject of an investigation launched by the prosecutor’s office in the Supreme Court, after the “Operation Influencer” certificate was extracted from the criminal case.

When asked about today’s headline morning PostLuis Montenegro gave the floor to Presidential Minister Leitan Amaro. “The employee left the company with compensation based on the lowest salary in the company. She worked for the company for 18 years, lost 18 years of integrity and lost the right to return to the company where she worked,” Leitan Amaro said.

The Minister of the Presidency also stated that the decision at that time was the one that would do the most to ensure public impartiality and independent governance by ensuring that the Secretary of State’s compensation was transparent and not a unique case.