The government’s proposal to reduce IRS rates by 2025 was approved in the specialty, with the favorable votes of the PSD, CDS-PP, arrives and liberal initiative. The PS opted for abstention and free voted against. The measure provides for a reduction in rates from the 1st to the 8th echelon, with an estimated dislike of 500 million euros.
The Government Bill to lower IRS rates in 2025 was approved Thursday in the specialty with votes in favor of the PSD, CDS-PP, arrives and IL.
In the vote that took place this afternoon at the Budget, Finance and Public Administration Commission, the PS abstained and the Free voted against.
In the committee they also have the seat PCP, o BE e o PAN, but the Deputies were not present. The vote happened at the same time as the plenary of the Assembly of the Republic was due.
The legislative proposal Reduces rates from 1st to 8th echelon of incomebringing a Tax cross -sectional displeasure At the various levels of income that the government estimates around 500 million euros.
Although Fees only lower until the 8th step, the descent is also felt by the ninth level taxpayers. This is because, with the rule of progressivity in tax calculation, a taxpayer’s income is divided, applying to each level of income, the respective fee.
Also approved a proposal for amendment to the government proposal, presented by the PSD and by CDS-PPwhat a safeguard that “In the state budget to 2026, the government proposes to reduce, additionally, by 0.3 percentage points the marginal rates of the 2nd to the 5th echelon.”
This standard was proposed by Social Democratic and Centrist Bank to meet an initiative of the arrivalhowever, withdrawn, which provided for this additional descent for next year.
What does IRS reduction proposal foreseen?
The proposal to reduce the approved IRS concerns the income earned by taxpayers over 2025. According to the government’s initiative, the rate of the first level goes from 13% to 12.5%, the second drop from 16.5% to 16%, the third low from 22% to 21.5%, the fourth decreases from 25% to 24.4%, the fifth decrease from the current 32% to 31.4%, the sixth is no longer 35.9%, the seventh to 43.1%. And lastly, the eighth low from 45% to 44.6%. The rate of the last yield step continues at 48%.
Before the Government change Source retention tables to reflect this downhillthe measure will still have to go to Global final vote na Assembly of the Republicfollow the appreciation of the President of the Republic and, being promulgatedbe published in DIARY OF THE REPUBLIC.
The government has already known, through the Minister of Finance, Joaquim Miranda Sarmentowhich will change the retention tables at the source as soon as it can do it, after Approval of the Law Proposalto reflect on taxpayers’ pockets to Reduction with retroactive effects to January this year.
“If all goes well, already in August and September with the calls retroactive And then, from Octobernew tables that already reflect the reduction monthly “he said in Brusselsa July 7when speaking to Portuguese journalists upon arrival at the meeting of the Eurogroup.
Joaquim Miranda Sarmento said it had the expectation that the proposal will be approved in the Last Plenary Voting of the current legislative session, for the executive to advance with the Publication of Tables according to this calendar.
“Being approved the IRS rates descent – The rates of Article 68 of the IRS Code -The government will immediately publish the retention tables at the source, which allow us to do-in a simpler language- retroactive against January this year“said the minister.
As a rule, when there are changes to IRS level ratesgovernments update the IRS Source Retention Tablesso that the monthly tax discount made in the salaries of workers due to others and in pensions Stay closer to IRS FINAL PAY.
