Check from 125 euros up to a salary of 2700 euros
In October, the government will grant “an extraordinary allowance of EUR 125″ to every non-retired citizen with an income of up to EUR 2,700 gross per month”, for 14 months, and an additional 50 for each dependent descendant, up to 24 years old. euros , regardless of the income of the family, the Prime Minister, António Costa, announced yesterday at the end of the extraordinary meeting of the Council of Ministers, explaining as an example that “a couple with two children and in which both have a individual income of up to 2700 euros will receive a benefit of 350 euros in October”. António Costa stated that the check for 125 euros for all non-retired persons with an income of up to 2700 euros per month, the equivalent of almost four minimum wages, will be automatically and paid in one go. sub sídio for the carer”. Payment will be made through Finance or Social Security, but the Prime Minister assured that this measure will be fully supported by the state budget. The aid is essentially a reinforcement and an extension of the measure adopted in the spring and summer which granted a check for 120 euros in two instalments of 60 euros to the beneficiaries of the minimum social benefits and the social rate. Now this figure is rising by five euros to 125 and is being extended to middle-class families.
Half board bonus for retirees
Most retirees also receive an extraordinary allowance equal to half-board in October. But on the other hand, the government will propose to parliament to limit the automatic updating of pensions in January 2023. Costa explained that the half-board bonus will reach almost all retirees. “The law only excludes pensions above 12 IAS (Social Support Index, ie retirees who receive more than 5318 euros) from the update, so “99.9% of retirees receive half a pension. With this increase, the government, instead of applying the usual formula for calculating the automatic update to 2023, which, due to GDP growth and inflation, could lead to increases between 7.1% and 8. %, to the Assembly of the Republic “propose the following: increase: 4.43% for pensions up to 886 euros, 4.07% for pensions between 886 and 2659 euros and 3.53% for other pensions subject to renewal” , said Antonio Costa. However, the Prime Minister confirms that “the surcharge paid in October contributed to the increases that will be proposed, guarantees guarantee increases between 7.10% and 8% in 2023”, i.e. that “no one will lose income as a result of this measure.
The VAT on electricity is up to 6%. gas is off
The cabinet wants to lower the VAT rate on electricity from 13% to 6%. Please note that the VAT rate for electricity is currently 23% and that of 13% only applies to certain consumption levels. The gas VAT reduction was not included in the package of measures to help families that was presented on Monday. Since December 1, 2020, the intermediate rate (13%) will be applied progressively up to the first 100 kWh consumed per month, but not for all customers. The VAT rate of 13% is only applied for consumers with a contracted capacity of up to 6.9 kVA and for large families – with five or more elements – with an electricity consumption of up to 150 kWh. For the other consumptions, the highest, the normal VAT rate of 23% will be maintained. The government stated at the time that the measure would affect approximately 5.2 million contracts (86% of low-voltage customers). The proposal to reduce VAT on electricity will now be submitted to the Assembly of the Republic. The aim is that “it will be urgently discussed in Parliament later this month so that it can enter into force on October 1,” António Costa stressed. In view of the current energy crisis, the Community directive on this tax was amended in April, exempting Member States from approval by the VAT Committee. For implementation, approval in parliament is therefore sufficient. As for gas, António Costa only recalled that the government had already announced that it would change the current legislation to allow consumers who are in the liberalized market to return to the regulated market where the rates are lower. A measure that will take effect on 1 October and which, according to the Prime Minister, is equivalent to an average saving of 10% on the bill.
Rent increase limited to 2%.
Assuming that the effects of inflation make rent increases of up to 5.43% (EUR 5.43 per 100) possible, the government has decided to limit this update to a maximum of 2% for all rents in homes and shops. The aim is “to prevent a year of exceptional and atypical inflation like 2022 from consolidating with lasting consequences,” the prime minister said. This rent inhibition will be accompanied by a tax component to mitigate the impact of the measure on landlords, which will be offset by cuts from the IRS and IRC.
Fuel with support until the end of the year
In the field of fuels, the measures to suspend the increase of the CO2 tax, refund of additional VAT revenue and reduction of ISP will be extended until the end of the year. That is to say, at this week’s prices, consumers in each 50-litre tank will pay €16 less for petrol or €14 less for diesel than they would pay if this set of measures were not extended,” said António Costa.
Public transport without surcharges
The prices of public transport tickets and CP tickets will be frozen in 2023. The impact of the measure on carriers will be met with “appropriate compensation” to CP and the transport authorities, the Prime Minister said.
Source: DN
