The government’s proposal to increase the IUC by a maximum of 25 euros per year for older vehicles (cars) and pollutants (motorcycles) will not go ahead. The PS, which has a majority in parliament, will remove the executive measure from the document.
In a note sent to newsrooms this morning, the Socialists justified the decision by saying that “the light vehicle is still in many cases the main form of travel to work or to the nearest public transport, especially outside the main cities of the country. and in medium and low density areas, where public transport provision is limited and not suitable for daily mobility needs.
“In these cases, where a car is an absolute necessity, there is also the fact that many citizens do not have the financial resources to replace it with a more recent vehicle. Therefore, it is considered important for reasons of social justice and protection of the most vulnerable civilian economy, correct the OE proposal in that sense,” it can also be read.
Finance Minister Fernando Medina had already anticipated this afternoon the possibility that the PS would scale back the controversial measure during the debate on the subject in parliament, which also opened the door for VAT relief on animal feed. in accordance with a PAN proposal.
Medina did not make a complete compromise and implicitly maintained his original opinion and proposal, which is stated in the OE: to significantly increase the IUC of older cars and many motorcycles in 2024 in the name of protecting the environment.
However, given the insistence of deputies Duarte Pacheco (PSD), André Ventura (CH), Duarte Alves (PCP) and Mariana Mortágua (BE) on whether the proposal to increase the tax on supposedly more polluting vehicles will go ahead at all, The ruler there threw the decision to Parliament and especially to the PS, which has an absolute majority and can do whatever it wants.
“The various proposals from the various factions are coming in and of course the PS faction will evaluate all these received proposals and its own,” said the Minister of Finance.
Like “we have not registered the measure [subida do IUC]”in the context of a higher requirement, such as a ‘constitutional amendment’ which ‘would require a qualified majority of two-thirds of the General Assembly’, this means that ‘any General Assembly of the Republic may change the proposal of the executive,’ said Fernando Medina.
In other words, a simple majority would be enough to reject the government’s proposal. As mentioned, only the PS can do this, as it has an absolute majority. Then the PS came and said they would do it.
Medina also recalled that “the government supports the proposal it made regarding the increase of the IUC from 25 euros”, having already admitted some corrections that modify (reduce) the maximum ceiling. “That is the government’s position on this matter,” he concluded.
The reduction of the tax burden (VAT) on animal feed was another point that the Governor of Finance showed that he could accept. In other words, accepting part of a PAN proposal.
When questioned in parliament by Inês Sousa Real, the leader of this party, Medina stated that “the VAT on animal feed is something that we cannot monitor in its expansion, but I believe that it will be possible, now in the specialty stage, to find something that goes in one direction that is comparable, close to this, in terms of VAT rate”.
The idea of the PAN is to reduce the VAT on pet food, currently at 23% VAT, to much less.
Below the normal rate of 23%, there are only three tax brackets: 13% (the so-called VAT on restaurants), 6% (VAT on essential goods and services) and the exempt (such as some exams and hospital services) and VAT 0% (such as currently the basic food basket selected as part of anti-inflation support).
Medina decides to dramatize a lot more
“Great uncertainty”, “very unfavorable conditions”, “recession in several countries”, “high interest rates until the end of next year”, “major restrictions and difficulties for many and Portugal will not be disregarded”, “we will not disregard be left behind.” be immune to what’s going to happen out there”, “it’s hard to find particularly positive signals”.
The conditions all come from Fernando Medina, yesterday, in the special debate on the OE proposal.
These are heavy statements that are not included in the Governor’s speech of October 31 (first hearing, in the debate in general), which took place before the political implosion of the government following Prime Minister António Costa’s decision to dismiss yourself.
On that last day of October, Medina opened the debate without serious and somber mentions, taking a much brighter tone.
“More income, more investments, a better future. These are the choices of the National Budget for 2024” and therefore “this is the budget that the country needs,” the Minister of Finance said at the time.
Next Tuesday, certainly with more macroeconomic information, and with the current government and the absolute majority of the PS in the future (this OE 2024 must be approved, but parliament will be dissolved on January 15 and new elections will be held on January 10 take place). March), as mentioned, Medina opted for dramatization in an attempt to further appreciate his OE proposal.
He started by mentioning, as he had done a few weeks ago, the “resilience” of the Portuguese economy, such as the “size of our labor market” and the fact that “employment is reaching successive peaks.”
He also said that “in addition to tourism, there are industries that have managed to increase their market share”, that is, they grew more than external demand.
On the part of the government, the minister emphasizes “the increase in the economic and financial credibility of the Republic, with a very clear impact on the level of interest rates that support the country”.
Here Medina tried out a novelty of sorts: “I am in a position to ensure that this year we will have a national debt of less than 103% of gross domestic product (GDP), that is, it will be even lower than the value we predicted a few weeks ago.” With RSF
Luís Reis Ribeiro is a journalist for Dinheiro Vivo
Source: DN
