Reduction in VAT and minimum wage of €1,250? Discover the new proposal presented to Parliament

Reduction in VAT and minimum wage of €1,250? Discover the new proposal presented to Parliament

This Monday, the Livre party presented a set of proposals for the State Budget that include the reduction in VAT from 23% to 21%, the increase in the national minimum wage to 1,250 euros by 2029 and the implementation of the four-day working week. The initiative appears as an alternative to the Government’s measures, which the party considers insufficient to respond to families’ difficulties.

On a day marked by the beginning of the parliamentary debate on the State Budget for 2026, Livre defended “12 ideas for 12 months” and “52 measures for 52 weeks”, a plan that aims to reinforce purchasing power and promote a fairer economy, according to Notícias ao Minuto.

Lower VAT and higher wages

Deputy Patrícia Gonçalves explained that the main proposal is to gradually reduce VAT, “half a percentage point per year”, until it reaches 21% in four years. The measure would, according to the party, have an impact of less than 500 million euros per year, but would bring “direct relief to families’ wallets”.

In parallel, Livre defends a progressive increase in the national minimum wage, with the objective of reaching 1,250 euros in 2029, following Spain’s trajectory.

A new National Housing Service

Apart from the minimum wage and VAT, another of the proposals highlighted was the creation of a National Housing Service, a structure that, according to parliamentary leader Isabel Mendes Lopes, would guarantee access to houses with prices compatible with average incomes. “It is necessary to innovate in construction methods and reduce costs without compromising quality”, he highlighted.

The party also wants to reactivate the “3C – Home, Comfort and Climate” program, aimed at combating energy poverty and improving housing efficiency.

Four-day week remains on the horizon

Among Livre’s best-known banners is the four-day working week, an issue that the party has once again put on the table. “It is incomprehensible that the Government does not even want to test this model”, said Isabel Mendes Lopes, remembering that the Azores will start a pilot project in the public sector in 2026.

The idea is to promote a greater balance between work and personal life, without loss of income, and evaluate the impact on productivity and well-being.

Social heritage and reinforcement of the SNS 24

Livre also wants to create a “social inheritance”, a “nest egg” of around 5,000 euros allocated to all babies born in Portugal, as a way of promoting equal opportunities from birth.

The plan also includes the reinforcement of SNS 24 resources, the increase in support for parents of children with serious illnesses (with a 100% salary benefit) and the extension of unemployment benefit to those who move to the interior to accompany their spouse.

Financing and tax justice

Asked about the budgetary impact of the proposals, Isabel Mendes Lopes assured that the party is “fine-tuning” the accounts, but guaranteed that “each proposed increase in expenditure corresponds to a cut in Government measures”.

Livre defends, for example, the end of tax benefits for non-residents and the revaluation of the IMT Jovem, replacing them with a tax on large fortunes.

“The Government has given up on helping people”

According to , for spokesperson Rui Tavares, the current Budget “fails in essentials”. “What the Government calls budgetary knights, we call helping people. If the PS and Chega give up on this, Livre will not give up”, he stated, at a press conference at the Assembly of the Republic.

The deputy also highlighted that “there is currently a right-wing majority that governs the country” and that Livre positions itself as a firm opposition to this political bloc.

Final decision still open

The party’s voting direction in general will be decided tonight, at a meeting of the Free Assembly. Even so, Isabel Mendes Lopes admitted that “it is no secret to anyone that Livre’s vision and that of this Government are totally opposite”.

For Rui Tavares, the essential thing is that the budget debate is used “to improve the document and bring it closer to people’s real needs”.

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