Even outside parliament, the CDS wants to intervene in the process of discussing the state budget for 2023 and has announced measures that will still have an impact this year and next.
In a series of four measures still set for 2022, centrists are proposing exemption from the IRS for support equal to a half-pension to be paid this month to retirees and retirees; as well as the 7.7% update of the income tax brackets, at the level of inflation forecast for this year by the Public Finance Council. “It is a fundamental measure to prevent another very strong increase in PS taxes on Portuguese families,” says Nuno Melo’s party.
Also by 2022, the CDS wants the introduction of the IRS deduction of interest on housing loans and the reduction of the prepayment by companies, which it defends “will ease the treasury and strengthen the liquidity of companies, in order to cope with inflationary pressures.” to offer”.
With regard to the measures to be applied to the national budget for next year, which will go to the House of Representatives on Monday, Nuno Melo defends the application of the 0% rate on foodstuffs.
He recalls that “under the terms of the new Council Directive (EU) 2022/542 of 5 April 2022, Portugal can apply a VAT exemption (0%) to the purchase of essential foodstuffs, without obtaining prior authorization from the European Commission”, a measure he considers essential to mitigate the effect of inflation on essential food products for Portuguese households, especially the poorest households. This measure to be approved would have a temporary character of 3 months, until the end of the 1st quarter of 2023 and renewable after reassessment. The CDS is also calling for a cut from 23% to 13% on all electricity and gas bills.
Increase in deductions
As for the IRS, centrists want a 25% increase in tax deductions for children, health care, education and general household expenses, as an “essential measure to support families fiscally during this time of crisis.” And still a maximum rate of 10% from the IRS for under 30s.
In the measures for companies, the CDS defends the reduction of the autonomous taxation by 50%. This is because he believes that “with more scrutiny by the tax authorities on deductible expenses, it is essential to reduce the autonomous taxation of companies”.
The center package for OE2023 also provides for a 150% increase in energy and fuel costs, an increase in the loss reporting period to 15 years and the ability to report prior years, which “defines the recovery and modernization of country”.
Nuno Melo is committed to this package of measures, which he says will be financed by the reduction in government spending compared to 2022 (as a percentage of GDP) and partly by the increase in tax revenue that the State will charge more. will bring. 2023, compared to year 2022, due to inflation. The CDS underlines that tax revenues increased by 6,700 million euros until August 2022 compared to the same period in 2021.
Source: DN
