LUSA 07/04/2025

Lusa - Business News - Portugal: Socialists to abstain in government's income tax cut bill

Lisbon, July 3, 2025 (Lusa) - The Socialist Party (PS) will abstain in the general vote on the government's proposal to reduce the personal income tax (IRS) on Friday, a socialist source told Lusa, while keeping open the possibility of tabling amendments in the specialised section.

The Socialists will decide to abstain on Friday and to keep open the possibility of tabling amendments in the specialised section, said the PS source, reiterating the need for this measure to take social justice into account.

This morning, as he left the PS Parliamentary Group meeting, PS secretary-general José Luís Carneiro told journalists that the Socialists would either vote in favour or abstain on the government's measure to reduce personal income tax.

The PS leader had left this hypothesis open as to whether he would present proposals for amendments in the specialised section of the House and left this answer for an "opportune moment".

José Luís Carneiro stressed that the Socialists are "in favour of reducing the tax burden on labour" and that, in this specific proposal, "it must correspond to social justice" because "the government can't say it's going to reduce the IRS and then sneak in an increase in the fuel tax".

On Friday, parliament will debate the government's proposal for a €500 million reduction in personal income tax, to be applied later this year.

In a statement, the cabinet emphasised that the approved proposal "allows for a further easing of the tax burden, additionally reducing marginal rates in all brackets, up to the 8th bracket".

Last week, in his first reaction to this measure, when he was still a candidate for the leadership of the PS, José Luís Carneiro was in favour of reducing the IRS, but said that he was waiting for the proposal to be discussed in parliament, warning that public accounts and social justice must be safeguarded.

"We are in favour of having a tax cut, a reduction in taxes, but now we are going to see, in parliamentary discussion, the terms in which it will be done because we also have to take care of the stability of public accounts and have healthy public accounts," he said.

José Luís Carneiro was speaking to journalists at the entrance to a campaign event at SEDES in Lisbon, after being asked about the government's proposal for an additional €500 million reduction in personal income tax, to be applied later this year.

JF/ADB // ADB.

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