António Cotrim / Lusa
The Minister of State and Finance, Joaquim Miranda Sarmento
IRS revenue registered a 5.1% homologous break in 2024 – the first since 2016 and the largest since the “troika”. This fall is explained by changes in retention at source in the last months of the year.
Change in retention of IRS make tax revenue give the Biggest Tumble Since Troika Time.
According to budget execution data, IRS revenue reached December 2024 totaling 17,018.5 million euros, retreating at about 900 million euros In view of the amount recorded a year earlier – where the 17,932 million euros then accounted for a maximum historical revenue of this tax.
Explaining this homologous break is Change in retention tables In the source that have been in force in the last four months of 2024 and were designed to accommodate the set of changes to the IRS approved early summer by Parliament.
Among those stand out:
- a Reduction of Fees which focus on the first six echelons of income (between 0.25 and 1.5 percentage points);
- a deduction climb specific to work and pension income in line with the update of the social support index;
- and Update of the minimum existence (corresponding to the share of net minimum tax income).
The retention model at the source also incorporated a mechanism, which was in force in September and October, compensation to workers and pensioners About the extra taxed tax in the months already elapsed, which made, for example, salaries and pensions up to about 1,175 euros gross have retained 0% in these two months.
What happened in Troika’s time?
The history of IRS revenue performance over the past decade and a half shows that only in 2012 the tax that focuses on the income of individuals registered a superior homologous break The one observed at the end of last year, and was then 7.6%.
At that time, however, the reasons for the break were different Of those now registered, with the country complying with a financial adjustment program imposed by Troika, following the request for aid to the European Commission, European Central Bank (ECB) and International Monetary Fund (IMF).
Between the end of 2011 and late 2012, IRS revenue fell about 800 million euros to 9,084.3 from euros, and the fall explained, according to the synthesis of budgetary execution, for the non -collection of extraordinary surcharge – which , in 2011, he rose to 790 million euros – and for the non -collection of retention at the source about the Christmas subsidies of civil servants and pensioners and retired, because they were suspended.
Since 2012 and until 2024, IRS revenue has registered homologous breaks at two times: in 2015, when it decreased by 1.3% due mainly to “revenue from revenue from capital income”, and the following year, and in 2016 The retreat was essentially due to the decrease in surcharge (which would later be fully eliminated) and reimbursement climb.
IRS is the second most relevant tax in terms of the Subsector State tax revenues, right after VAT. In 2024, the IRC first exceeded the barrier of 10 billion euros of revenue.
