The Government approved, last Friday, a bill to reduce the marginal IRS rates for all levels, with the exception of the 9th, which applies to annual taxable incomes over 81,199 euros.

The bill in question, which amends Article 68 of the IRS Code, will be debated in the Assembly of the Republic (AR) in a plenary meeting scheduled for Wednesday, April 24.

According to the Prime Minister, Luís Montenegro, this measure is worth 348 million euros, which adds to the 1,191 million euros of IRS reduction already in force since January, made by the previous PS Government in the State Budget for 2024.

The sum of these two IRS reductions, according to the Head of Government, gives a total of 1,539 million euros compared to 2023.

The other parties with seats in parliament have already reacted to this change and have left some proposals on the table.

The PS wants to focus on the lower income brackets for the IRS tax relief decided by the Government, advocating a greater reduction in the rates of these brackets than that proposed by the executive and an increase in the minimum existence.

The Chega proposes that incomes up to 1,000 euros be exempt from IRS and a "readjustment of the brackets" to benefit those who earn up to 2,000 euros, admitting that it will seek to "reach some consensus" with the AD.

The Liberal Initiative (IL) will vote in favor of the Government's bill to reduce IRS, but proposes that, in the next Budget, this tax should only have two brackets, with rates of 15% and 28%.

The Left Bloc (BE) proposes to increase the specific deduction for all taxpayers by 582 euros and that interest expenses on housing loans be updated in IRS, also covering contracts after 2011.

In turn, the Livre wants a more significant reduction in IRS rates in the lower income brackets and an increase in the last brackets, ensuring a reduction in the average rate in all brackets and "greater progressivity".

While the PCP wants to reduce the IRS rates of the first and second brackets by 12.5% and 17% and increase the taxation on capital and wealth income, advocating "greater tax justice".

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