The PCP considered this Friday that the Government’s decision to approve new IRS withholding tables was “inevitable” and “nothing more could be expected”, but argued that the measure is “insufficient” and “a timid step”.
“We thought that this decision was inevitable, taking into account all the progress that this process around the SRI has had in the Assembly of the Republic, and we would not expect anything other than its implementation, especially since there are sufficient resources for it,” said Vasco Cardoso, a member of the Political Commission of the Central Committee of the PCP, in statements to Lusa.
The communist leader considered, however, that, despite the fact that this reduction of the IRS has received the favorable vote of the PCP in the Assembly of the Republic, it is, “In fiscal terms, insufficient”in particular because it set aside “the mandatory inclusion of all income”, “by choice of the PS and the PSD”.
The IRS reduction approved in Parliament “goes there” with the Government’s proposal that hopes that the President decides whether to change the tables
“We believe that it is fiscal justice that income from work is taxed at the same rate as income from capital, and that is not what happens currently,” he criticized.
On the other hand, Vasco Cardoso also recalled that the PCP defended, and continues to defend, “the update of the specific deduction”which, according to the party, would benefit “the lower income strata much more significantly,” and which was also not approved.
Asked whether he believes that this reduction in the IRS could provide some relief to Portuguese families in the face of the rising cost of living, Vasco Cardoso replied that the measure “is a very timid step from the point of view of fiscal justice” that the country needs.
“One that effectively responds to the purchasing power needs of workersThe main concern of retirees, of the vast majority of the population, is the increase in salaries and pensions, an issue that has been removed from the centre of political decision-making by both the previous PS Government with an absolute majority, and by this PSD/CDS Government,” he stressed.
The leader of the PCP said that “a lot of struggle and a lot of intervention will be necessary on the part of the PCP and the workers in Portugal, so that this increase in wages, so necessary, urgent and important for the development of the country, becomes a reality.”
Asked how he views the statements of the Prime Minister and the President of the Republic, who sought to link the promulgation of measures such as the reduction of the IRS or the elimination of tolls in the former SCUT with the negotiations of the State Budget, Vasco Cardoso replied that “the country has problems and needs answers, and has the resources to provide those answers.”
“Any kind of conditioning of this response in the name of measures that are being approved now is aggravating the problems,” he said.
Vasco Cardoso stressed that the Government recently approved a reduction in the IRC, which considered “diverting 4.5 billion euros of public resources, in the first four years, into the pockets of economic groups.”
“A cross-cutting reduction in the IRC will necessarily be the Government’s proposal”
“That means there are resources, now these resources, Instead of increasing the company’s profits such as Galp, EDP, Sonae, Jerónimo Martins or banks (…) should serve to boost public investmentrespond from the point of view of public services and salaries,” he stressed.
For the leader of the PCP, “there is no problem of lack of resources in Portugal, there is a problem of injustice and a government that is preparing to deepen it.”
The Government will approve new tax withholding tables that will reflect the reduction in IRS rates, following the promulgation of the diploma by the President of the Republic, which will enter into force in September and with retroactive effect.
Marcelo promulgates diplomas that the Government did not want and says that the impact can be pushed to 2025
“Following the promulgation of AR Decree No. 7/XVI by the President of the Republic, which modifies the IRS rate table, the Government will approve new tax withholding tables that will reflect the reduction in IRS rates,” the Ministry of Finance said in a statement sent on Friday.
Source: Observadora
