António Pedro Santos / Lusa
Joaquim Miranda Sarmento, Minister of State and Finance
The 500 million cut has already been approved by the Council of Ministers and will benefit mainly the second and sixth levels. The cut will have a more significant impact on taxpayers of the second and sixth echelons of performance.
The government this Wednesday, in the Council of Ministers, the proposal of law that provides for a 500 million euros reduction in IRS.
The measure, which will be applied with retroactive to January this year, promises annual savings of over 400 euros for some families compared to what was provided for in the state budget, says.
The cut will have a more significant impact on Taxpayers of the second and sixth echelons of yield.
The accumulated reduction of the IRS rate in the mentioned levels reaches two percentage points, which translates into considerable savings for different taxpayer profiles.
Official simulations highlight several examples: a single childless single, with a monthly gross yield of 1000 euros, Save 34 euros Regarding the amount initially expected in 2024. A taxpayer with the same profile, but with yield of 3000 euros, will have a relief of 207 euros compared to what was anticipated.
In the case of children without children and with joint income of 2000 euros monthly, the Savings will be 248 euros in relation to what was budgetary. If the yield is 3000 euros, relief rises to 414 euros. These values also apply to couples with two children, with the same income.
Pensioners will also feel the effects of the measure. A retired with a 1000 euros pension will save 34 euros compared to the expected value and 352 euros compared to last year. For pensions of 2500 euros, the relief will be 166 euros.
The simulations take into account the maximum deduction of 250 euros In general expenses by holder and other deductions in the amount of 700 euros. The IRS reduction covers the eight first echelons, leaving only the ninth and last. Still, taxpayers of this echelon benefit from the descent in the rest.
The government also promises to adjust the retention tables at the source, reflecting this reduction in fees with retroactive effects to January, to ensure a greater proximity between the tax withheld and the effectively due.
The government’s proposal now has to be approved by Parliament.
