The Government should soon move forward with a reform of tax justice and tax litigation, including a review of rates. The announcement was made by the Minister of Finance, Joaquim Miranda Sarmento, during the , in Lisbon.
In the intervention, the government official pointed to fiscal simplification as one of the areas in which the Executive intends to act, in a broader context of reforms aimed at responding to some of the main constraints identified in the country.
Tax justice reform on the way
Joaquim Miranda Sarmento stated that the Government will move forward “soon” with the reform of tax justice. At issue, according to the minister, is an intervention in tax litigation and a review of rates, although no concrete timetables or specific measures have been detailed.
Tax justice is an area often associated with lengthy processes, tax litigation and administrative costs for taxpayers, companies and the State. The intention signaled by the minister points to an attempt to make the system simpler, faster and less cumbersome from a bureaucratic point of view.
Tax simplification among priorities
During the conference, the Minister of Finance framed the fiscal reform within a broader set of measures considered necessary to improve the functioning of the Portuguese economy. Among the main obstacles highlighted are human capital, bureaucracy and the job market.
On the fiscal front, simplification appears as one of the Government’s central promises, with an expected impact on both companies and citizens. The review of tax justice could, therefore, have direct relevance for those who have disputes with the Federal Revenue Service, for companies facing lengthy processes and for taxpayers contesting tax decisions.
State also comes into focus
In addition to the tax area, Joaquim Miranda Sarmento once again defended State reform. The minister spoke of the need to extinguish and reduce the number of entities, but mainly highlighted the objective of combating bureaucracy.
In his intervention, he identified bodies where the Government considers there to be a bureaucratic problem, referring to the Portuguese Environment Agency, the Institute for the Conservation of Nature and Forests, the Institute of Registries and Notaries and the Regional Coordination and Development Commissions. These entities are frequently mentioned in debates about licensing, investment, spatial planning, the environment, records and administrative procedures.
Bureaucracy seen as a brake on the country
Criticism of bureaucracy has been recurrent in political and economic discourse, especially when the ability to attract investment and accelerate projects is at stake. Lengthy licensing, overlapping skills and complex administrative processes are highlighted by companies and business associations as obstacles to competitiveness. Still, we still need to know the details of the planned changes and the real scope of the reform.
Measurements yet to be finalized
Despite the announcement, the minister has not yet presented a closed package of measures. The expression “soon” points to an intention to move forward soon, but leaves the political and legislative calendar open.
It is also unclear whether the reform will be carried out through a bill, decree-law or other legislative instrument. What is signaled is the intention to change a sensitive area, with an impact on the relationship between taxpayers, companies, courts and the Federal Revenue Service.
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