This Wednesday afternoon, the plenary session of the Assembly of the Republic will begin a two-day debate on next year’s state budget (OE2023). The general vote will take place tomorrow, Thursday, and will conclude a debate lasting more than ten hours.
The proposal, it is already known, will be approved, even if it is with the power of the absolute majority of the PS. As for the opposition, almost all parties have already announced their vote against, starting with the PSD. Enough, Liberal Initiative, PCP and Bloco de Esquerda have already announced that this is their intention.
So what remains to be known is the vote of the only PAN and Livre deputies, Inês Sousa Real and Rui Tavares respectively, who admitted to abstaining (but never voted in favour).
Once the general vote is complete, the specialty discussion phase begins (article by article). From 28 to 11 November, all ministers have to go to the Parliamentary Committee on Budget and Finance. The SO2023 returns to plenary on November 21 to vote on the specialty, with the final global vote expected on November 25. Because the cabinet proposal is already known, the DN lists the most important opposition proposals.
PSD
The Social Democrats presented measures for OE2023 for which they calculate a global cost of “more than a billion euros”, including cuts in the IRS and IRC and the increase in the Social Support Index (IAS) to combat inflation.
• For young people up to the age of 35, apply a maximum IRS rate of 15 percent (excluding the last bracket of the income tax).
• Raise the IAS in line with the estimated inflation of 7.4 percent, so that benefit recipients (unemployment benefit, RSI, child benefit, etc.) do not lose their purchasing power.
• Negotiation in the Social Dialogue on raising the National Minimum Wage from a reference value of €765 (an increase slightly above the expected inflation of 7.4 percent), with simultaneous implementation of productivity-enhancing measures.
• Lowering the IRS to the 6th level at a cost of approximately 400 million and framed in a general cut in the tax on labor income.
• Proposals for negotiation in the Social Agreement to increase parental leave to 26 weeks.
• Reduce the IRC rate from 21 percent to 19 in 2023, with a reduction from 19 percent to 17 in 2024.
• Reinforcement of capitalization and financing lines for SMEs, especially for the sectors most affected by the increase in energy, as well as for the agri-food sector.
He’s coming
André Ventura’s party proposals were announced as soon as OE2023 entered the AR. Yesterday, the party added measures against unexpected gains in the energy sector.
• That the aid of 125 euros from the government is extended and exempt from tax during all months of the following year.
• Tax exemption on holiday and Christmas allowances.
• Reduction of tolls, especially in the Algarve.
• No VAT on essential goods.
• Extraordinary profits for companies in the energy sector that flow directly back to the reduction in taxpayer billing.
liberal initiative
The party led by the now resigning João Cotrim de Figueiredo promises few proposals, but all are “really reform-minded”. What little is known was announced earlier this month.
• Single IRS rate (15 percent) in the first five levels.
• Reduction of IRC.
• Proposals for the elimination of double taxation, tax relief, simplification of procedures (mainly in the area of employment income).
PCP
The communists agreed to participate in the bilateral meetings that the government had arranged with the parties to the left of the PS. And they have already started announcing proposals.
• Increase of the pensions without discount in relation to the applicable law, with an increase of at least 50 euros.
• Establishing reference prices for foodstuffs.
• Determination of reference price for fuels.
• Implement an exclusive physician commitment regime with a 50 percent increase in base salary and accelerated career advancement.
• Strengthening the progressivity of the IRC, based on the reduction of the tax on micro and SMEs and the increase in the profits of economic groups, namely the 35 percent rate for profits over 50 million (reached between 40 and 50 businesses)
• Universal application of the reduced VAT rate (6 percent) to electricity, natural gas, LPG and gas bottles;
• Tax authorities. updating the brackets by 7.8 percent (inflation forecast by the BdP and CFP) above what the government expects. Increase in the value of the minimum existence and the specific deduction.
left block
BE refused to participate in meetings that the government specifically organized with parties to the left of the PS. “There’s no point in trying to simulate a dialogue that doesn’t really exist,” that is, tuning into a “dialogue simulation,” said Pedro Filipe Soares.
• Taxation of windfall profits of large companies in the energy sector.
• Creation of a 9 euro national pass allowing people to use all transport in the municipalities and metropolitan areas, as well as road transport and trains making medium-distance connections in Portugal.
PAN
The PAN, like the PCP and Livre, also agreed to hold OE2023 negotiation meetings with the government. At least one has already passed.
• Review of IRS levels.
• No VAT on essential products.
• Six percent VAT on bicycle purchases.
Free
Rui Tavares’ party has launched an internal process inviting militants to submit their proposals for OE2023. Here are a few.
• Creation of a national rail pass that is made available at a reduced rate.
• Abolition of tuition fees in the 1st stage of Higher Education.
• Increase in the number of rooms available for displaced university students.
• Conducting the research on the four-day week.
Source: DN
