After all, lowering the IRC implies a loss of many more millions than the Government predicted

After all, the drop from 21% to 19% in the IRC (Corporate Income) rate would cost more than the Government anticipated. The impact, estimated by the Technical Budget Support Unit (UTAO), could reach 841 million.

UTAO quantified in 841 million euros the impact of the proposal from the Government of the Democratic Alliance (AD) supported by Chega to drop the figure from 21% to 19%,

“IRPJ revenue projected in the PA-1909C scenario in 2025 is 841 million below the base scenario (which uses current rates), representing a drop of 9.8%. This loss is concentrated in the normal rate range (732 million)”, with the remaining 109 million euros being lost at the reduced rate, details UTAO, cited by .

The same newspaper recalls that the AD estimated that the intended cut would cost 500 million euros. But this value is, after all, higher.

This budgetary impact is related to public accounts for 2026 – the year in which the company tax calculation for 2025 is made: “These impacts were projected from the perspective of the specialization of the year and will only have an impact on the budget balance during the year 2026”.

“It is worth noting the theoretical possibility of a marginal impact, not anticipated, having effects on the revenue of the Public Administration account in 2025, due to the adjustment in the value of the third payment on account, in December 2025”, explains UTAO.

The Technical Unit also assessed how much the end of state spillas the Liberal Initiative proposes: would cost 1,280 million of euros to the State.

UTAO’s projection was delivered this Monday, before the parties’ initiatives were voted on in the specialty, this Tuesday afternoon.