The announcement of the new IRS descent has re -placed the unique persons in the center of the fiscal debate. The government’s proposal foresees changes in rates as early as September, with retroactive effect at the beginning of the year. But what will, after all, be the impact on the Portuguese pockets?
The measure emerges as part of the strategy outlined in the government program and aims to relieve the fiscal burden on the middle class, in a proposal that, according to the executive, seeks to go beyond what was inscribed in the state budget to 2025.
Downhill in almost all echelons
According to the statement of the Council of Ministers, the reduction will be applied to all IRS levels except the highest.
The measure translates into cuts of 0.5 percentage points between the first three echelons, 0.6 points between the fourth and sixth, and 0.4 points in the seventh and eighth.
According to the Prime Minister, Luís Montenegro, this will be the third reduction in IRS since leading the executive, stating the commitment to “continue to do so during the legislature.”
More income available, says the government
The proposal aims to increase the available income of Portuguese families, especially those inserted in the middle class.
According to the government, the impact will be higher than that initially planned for 2024, offering an “even more significant tax relief”.
The Ministry of Finance ensures that the effect will be visible this year, with changes in retention at source from September, and with retroactive correction of values since January.
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Simulations help to perceive the impact
In an official note, the Ministry of Finance issued concrete examples for different profiles: single -dependent singles, couples with or without children and pensioners. These scenarios simulate how the new echelons and rates will focus on income in 2025.
According to the Eco newspaper, which cites calculations of a supervisor, the biggest gains can be felt by those who earn between 3,500 and 7,000 euros gross monthly, especially in the case of single and unruly contributors.
DOUBLE BENEFIT FOR MEDIATE HALKS
According to the same source, these taxpayers will benefit both for the descent of the 7th and 8th level rates as well as for relief in the first levels of performance, which, in practice, ends up reducing the total tax burden even in higher wages.
The proposal also includes a relief in monthly retention, which should translate into a direct increase in net salary from the fall.
Retroactive and approval in Parliament
The measure will be brought to Parliament soon. According to the prime minister, the executive hopes to see the proposal approved in the coming weeks, so that it can take effect in September, as happened last year.
It is recalled that by 2024 the same model was followed: the IRS reduction was implemented in September and October, with new values in the retention tables offering the previous months.
Reinforcement of the Legislature Promise
The Prime Minister pointed out that this new round of IRS cuts is another step in the electoral promise of reducing tax by two billion euros until the end of the legislature, and 500 million should be applied by 2025.
It now remains to follow the developments in the Assembly of the Republic, where it hopes to get the proposal approval in a timely manner to ensure effective application later this year.
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