The fiscal relief announced by the government begins to take shape in Parliament. The IRS descent proposal for this year, approved generally in the Assembly of the Republic, is now waiting for the final vote in the specialty. According to the Minister of Finance, Joaquim Miranda Sarmento, the goal is that the new retention tables are already in force with retroactive in August or, at most, in September.
“Our expectation is that [a votação final] It will take place on the 16th of this month, ”said the ruler to journalists on the sidelines of a Eurogroup meeting in Brussels. Only after this stage can the new tables be published and applied to salaries.
Proposal covers all levels
The executive’s proposal provides for a reduction in IRS rates in the first eight echelons of income. The descent goes from a percentage to 1%point, affecting virtually all taxpayers who pay income tax. The rate of the first level, for example, retreats from 13% to 12.5%, while the second low from 16.5% to 16%.
Also the remaining levels until the eighth summer proportional cuts: 21.5% in the third, 24.4% in the fourth, 31.4% in the fifth, 34.9% in the sixth, 43.1% in the seventh and 44.6% in the eighth. The maximum rate of 48%remains unchanged.
According to the government, even the taxpayers covered by the latter echelon benefit from some displeasure, through the progressivity of the tables.
When is the change in salaries?
Joaquim Miranda Sarmento indicated that the plan is to apply the new values “already in August and September”, with retroactive to the moment of entry into force of the law. “Then, from October, we will have new tables that reflect this reduction monthly,” he said.
According to the Ministry of Finance, this anticipation aims to prevent taxpayers from having to wait for the IRS settlement in 2026 to receive the additional tax return by 2025.
Retroactive included in the update
The government ensures that the application of the new tables will include retroactive payment of the differential since the entry into force of the law. In practice, those who have had excessive values retained throughout the year will receive this more amount in the months when the new tables are applied.
This retroactive payment will be automatic and reflected in the expiration receipt, without the need for the taxpayer.
Opposition divided into voting
The proposal was approved generally with the favorable votes of PSD, CDS-PP, arrives, liberal initiative, PAN and JPP. The Socialist Party opted for abstention, as a left block, PCP and free voted against.
The reduction of IRS represents an estimated impact of 500 million euros on public accounts in 2025. The government argues that it is a “structural” measure and necessary to relieve the fiscal effort of families, given the inflation of recent years.
Tight but possible calendar
Time is a determining factor. In order for the increases to be felt in August, the final vote of the proposal will have to occur until mid -July, allowing the government to publish the new retention tables in time.
If the calendar is fulfilled, taxpayers may be reflected the tax descent already due in late August or early September.
Do not confuse with automatic IRS
It is important to distinguish this change from the usual IRS settlements that occur every year between April and July. The measure now under discussion concerns monthly retention at the source, which determines the value of the net salary received every month.
By changing these tables, the executive anticipates part of the return that would be made in 2026, allowing greater liquidity to families this year.
A relief for everyone?
Although the measure covers all levels to the eighth, the actual impact will depend on the tax situation of each taxpayer, including income, deductions and other variables. In average terms, taxpayers with income between 1,000 and 2,500 euros gross monthly will be the main beneficiaries.
Still, according to the Jornal de Negócios, the average savings will be between 10 and 30 euros monthly, depending on the family profile.
What is missing for the measure to advance?
Final approval in committee and plenary is the last necessary step. After that, it may publish the new tables in Diário da República and issue instructions to employers for immediate application.
Joaquim Miranda Sarmento ensures that everything will be ready to comply with the scheduled calendar, now be sure if the legislative and administrative machine follows the ambition.
Also read:
