Lusa - Business News - Portugal: Finance minister may increase income tax deduction

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Lusa - Business News - Portugal: Finance minister may increase income tax deduction

Lisbon, April.24,2024 (Lusa) - Portugal's finance minister, Miranda Sarmento, acknowledged on Wednesday that he would consider updating the specific deduction in the 2025 State Budget, as a way of reducing income tax ‘for those who work’.
‘Updating the specific deduction is an instrument that could be considered in the Budget for 2025, along with reducing rates, in order to reduce the IRS of those who work,’ said the minister.
Miranda Sarmento was speaking during the parliamentary debate on the government's proposal to reduce personal income tax rates up to the 8th bracket, in response to a question from the leader of the Communist Party, Paula Santos.
In addition to the government's proposal, today the plenary is debating initiatives to reduce income tax presented by the various opposition parties, which include different solutions for reducing the rates that apply to income brackets, as well as updating the specific deduction and even strengthening housing deductions.
The specific deduction has been frozen since 2015 at €4,104 - this amount is taken into account for salaries where Social Security deductions or equivalent are higher - with the PCP and BE proposing an increase that €4,104.
During the debate, Miranda Sarmento was also asked when the reformulation of the IRS Jovem and the salary premium (exemption from income tax and contributions of a premium equivalent to a 15th month) would go ahead, but the minister said only that the measures are part of the government's programme for 2025 and that the government would try ‘to do it as quickly as possible and within the budgetary margin’ available to them.
LT/ADB // ADB.
Lusa

Agency : LUSA
Date : 2024-04-25 10:42:00

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