The Liberal Initiative, in its proposals to amend the State Budget for 2025, suggested a change in the financing of political parties and electoral campaigns, specifically a “reduction of around 40%” in the case of public subsidies for financing of political parties. The party requested the Technical Budget Support Unit (UTAO) to carry out a study of the budgetary impact of the measures.
“The Liberal Initiative Parliamentary Group requests the preparation of the following study from the Technical Budget Support Unit (UTAO) (…): Changes in the financing of political parties and electoral campaigns. If possible, we request a breakdown of the impact of the two basic changes: on the one hand the revocation of tax benefits for political parties and, on the other, the reduction of public subsidies for the financing of political parties,” it can be said. read in the note sent to UTAO.
The IL proposal refers to a “change in the financing of political parties and electoral campaigns”, especially with regard to party subsidies. Liberals consider the current value to be “too high“, so they propose a “reduction of around 40% in the amount that the Portuguese currently pay to political parties, which continues to be imputed based on the number of votes.” In this case, the subsidy that is currently 1/135 of the value of the IAS for each vote obtained in the election for the Assembly of the Republic would become 1/220.
IL states that there are currently three subsidies: the party subsidy, the campaign subsidy and the parliamentary subsidy. “In total,” the party states, the cost is estimated at “around 120 million per legislature“. “We are only reducing party subsidies by 40%, we are not changing campaign subsidies or parliamentary financing. The parties have more than enough public funds for their political activities. They just have to manage it better,” the party states.
Furthermore, IL also proposes “the end of tax exemptions that political parties currently enjoy” by considering that there is “inequality before the law”, which “gives political parties benefits that are denied to citizens.” In this way, liberals consider that “positively discriminate political parties to the detriment of citizens and companies is unacceptable.” And, despite highlighting that it is a “residual” issue in the Budgets, they value it because it is a “question of principles.” “We want to put an end to this injustice,” writes the IL parliamentary group in the proposal in question.
Taking into account this proposed change, IL suggests that parties should no longer be exempt from various taxes, including stamp duty, inheritance and gift tax, municipal tax on expensive property transfers, for the acquisition of property intended for their own activity and for the transfers resulting from a merger or division, and the municipal tax on real estate, on the taxable value of the real estate or part of the real estate owned by it and used for its activity, but also the tax on vehicles, tax on the value added in the acquisition and transmission of goods and services intended to spread your political message or your own identity and the value added tax in the transmission of goods and services in special fundraising initiatives for your exclusive benefit, provided that this exemption does not cause distortions of competition.
In addition, the IL would also exclude the exemption from legal fees and costs to which political parties are entitled. Taking into account the proposal, only the IRC exemption would be maintained.
Source: Observadora
