In a parliamentary hearing in the Budget, Finance and Public Administration Committee (COFAP), at the request of Chega regarding the controversy surrounding the IRS reduction announced by the executive led by Luís Montenegro, Joaquim Miranda Sarmento today challenged the parties to reach an understanding on the IRS proposals, which are being discussed in the specialty, "as quickly as possible".

"The longer this understanding takes, the more difficult it will be for the Republic to apply the withholding tax tables in July. But if not in July, it could be in August, or in September, so that the Portuguese can feel additional relief on the IRS", he said.

The minister stressed that the PSD and the CDS, the two parties that support the executive, presented a new proposal, which, "obviously, the Government supports".

The minister responsible stressed that the proposal "has a principle, which is to cover all levels, except the last".

"It is true that when a level is reduced, the progressive effect of the tax affects all levels that are above, therefore, I would say that it is very difficult to lower a level without benefiting the higher levels in euros", he pointed out, arguing, however, that the proposal benefits the lower levels.

Miranda Sarmento considered it "important to continue reducing the rates in the first five levels, but also to reduce the rate of the 6th, and then a reduction, which is much smaller, in the 7th and 8th" levels, pointing out that the 6th level covers net monthly incomes between 1,300 euros and 1,800 euros.

"This is our proposal principle. It can be changed, it can be altered, but there is a principle that must be maintained, which is that all levels must have reductions in marginal rates".

The Government proposed a rate reduction between 0.25 and 3 percentage points up to the 8th income level, with the largest reductions (3 and 1.25 points) falling, respectively, on the 6th and 8th income levels.

However, the PSD submitted a proposal in the specialty that provides for an additional reduction of 0.5 percentage points in the rates that affect the 3rd and 4th income levels, which thus drop to 22% and 25%, respectively, that is, equal to what the PS defends.

Regarding the 6th level, the PSD argues that the rate should drop to 35%, that is, one percentage point less than the Government proposed, and that the changes in this income level -- which corresponds to gross salaries between approximately 2,200 euros and 3,100 euros -- motivated strong criticism of the PS, which defends maintaining the rate of this level (36.5%).

With this project, the PSD also comes closer to the rate scheme defended by Chega, although the party led by André Ventura defends a steeper reduction in the rate of the 6th level (to 32%) and the 5th level (to 31.5%).

[News updated at 19:34]

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