The Government wants to create a mechanism to adjust IRS rates to all those who have salary increases within the framework of the medium-term agreement on income and competitiveness that is negotiated in the Social Dialogue.
The measure is provided for in a version of the Great Options (GO) 2022-2026 bill, to which Lusa had access, and aims to “guarantee budget neutrality to improve Portuguese income”.
Taking into account the ongoing negotiation in the Social Dialogue of a medium-term agreement to improve income, wages and competitiveness, the necessary adjustments will be made to the structure of this tax, “the document reads.
To do this, adds the text of the GO, “the IRS rates will be adjusted for all those who will benefit from increases in income, within the framework of the aforementioned agreement on Social Dialogue, in order to ensure the budgetary neutrality of the improvement of the income of the Portuguese”.
Even within the scope of fiscal policy aimed at families, the Great Options proposal indicates that the The Government “will facilitate the decision” of families to have a second and third child, “increasing IRS tax deductions based on the number of children” (excluding differentiation of children according to parents’ income)”.
The measure is added to the one already announced reinforcement of family allowance and tax deductions the IRSwhich aims to guarantee all families a value of 600 euros per child or young person.
Fiscal policy will make a significant contribution to the challenge of demography, with the specific increase in tax deductions for families with children and with the expansion and improvement of the IRS Jovem, increasing the disposable income of a generation of highly qualified young people, improving conditions to develop their personal and professional projects in Portugal”, says the document.
The family subsidy increases to 600 euros per year in the first two sections until 2023
In the General State Budgets for 2022 (OE2022), the IRS Jovem regime was extended to self-employed workers and young people up to 28 years of age, and the IRS partial exemption regime was also extended through the ‘Regressar’ program and the Tax deductions for families with children.
On October 10, the Government delivers to Parliament the proposal for the General State Budget for 2023 (OE2023).
Source: Observadora
