Predictions are from the Public Finance Council that anticipates a reduction in this year’s reimbursements and, on the other hand, a positive impact on state accounts of 1,167 million euros in 2025.
IRS reimbursements should be reduced by 1,167 million euros by 2025 due to changes in source retention last year, having a positive impact on tax revenue, calculates the .
“It is estimated that the decrease in IRS-based retention in September and October 2024 implies an increase in direct tax revenue of 1,167 million by 2025 by reducing reimbursements,” an document estimated Thursday by CFP.
Nazaré da Costa Cabral, president of CFP, explained at, in Lisbon, that This question “is complicated to estimate because reimbursements depend on some extent what the level of retention at the source was in 2024 and it was necessary to have thinner information to know at the level that household aggregates have occurred and what will be translated into revenue level.”.
Questioned about the adjustment of retention at the source prepared last yearthe guardian pointed out that “It was a policy option.”
“What the government did in 2024 was to abdicate a part of revenue, and speaking of measures in a context of fiscal displeasure, IRS suffered a reduction. (…) The mechanical effect of the application of retention tables implied that the state abdicated more revenue than it could have been adopted”, which “will have a conjuncture impact by a favorable 2025,” he explained.
The CFP except, in the report, that This effect is punctual, and it has advanced with a low tax review that “is determined, almost in its entirety, by approving permanent measures to increase the performance of families and companies” “.
There is the “non-repetition, in 2026, of the effect (reviewed high in this projection) positive and punctual associated with a lower volume of reimbursements in 2025, resulting from the anticipation in September and October 2024 of a part of the reimbursements due to the 2024 IRS, which would be paid by 2025,” says CFP.
