These proposals are part of a series of about 200 amendments that the Social Democrats will be submitting to the state budget proposal, estimated by the Social Democrats to cost €500 million, about 0.2% of GDP.
“It is without prejudice to the deficit and debt target that the government has in the state budget (…) There is margin on the tax revenue side in light of the macroeconomic scenario to include these measures “, defended the parliamentary leader of the PSD Joaquim Miranda Sarmento, during a press conference in parliament.
Among the novelties presented today – the PSD had already announced its main priorities for this budget at the beginning of October – there is a proposal to increase the number of beds for displaced students through the conclusion of a multi-year contract, until the end of the legislature, between the government and the private, social, autarchic and IPDJ sectors to solve housing problems.
The reduction of the tax on IRS savings (reduction of the withholding percentage from the current 28% to 10% for savings up to EUR 100,000), the increase in the IRS deduction for educational expenses to EUR 1,000 or the exemption from VAT on the acquisition of commodity food for the solidarity sector in 2023, other social-democratic proposals are under discussion in the specialism.
Bank Vice Presidents Hugo Carneiro, Clara Marques Mendes and Ricardo Baptista Leite attended the press conference.
Describing the housing changes, Hugo Carneiro explained that, in the case of owner-occupied and permanent housing, municipalities can reduce the Municipal Property Tax (IMI) tax to a minimum of 0.1%, when it was currently 0 . 3%.
On the other hand, the possibility that families can deduct interest and capital costs on home loans from the IRS (only for owner-occupied and permanent housing) is recouped, which means that the deduction amount is updated to 680 euros.
In terms of business support, in addition to the proposal already tabled to reduce the IRC from 21% to 19%, the PSD will propose a change to the System of Tax Incentives for Research and Business Development (SIFIDE), excluding investment funds and rising eligible expenditures in the energy, environmental and digital transitions, and that companies can resort to “factoring” operations, i.e. discounting the invoices they face with the state at authorized financial institutions to recover your money faster.
“The public contracts signed many times forbid this operation,” he stressed.
In the field of family support, birth rates and the social economy, Clara Marques Mendes highlighted the proposal already announced in October to extend the free allowance of private daycares, with retroactive effect to September 2022, and to grant the right to benefit for social integration that will soon be needed.
To strengthen the sustainability of the IPSS, the PSD also proposes a VAT reduction of up to 6% on works carried out in these institutions and an exemption from VAT on food.
Ricardo Baptista Leite highlighted, in the area of health and welfare, the – also well-known – proposal for the state to be able to temporarily hire in the private and social sectors to ensure that all Portuguese have a GP.
More incentives for health professionals and vouchers for patients to go private to reduce waiting times for surgeries, consultations and examinations, an increase in the number of beds in continuous and palliative care, and a psychologist’s check (which would work similarly to the dentist’s check) are other PSD proposals in this area.
The reduction of the maximum IRS rate of 15% for young people up to the age of 35 (excluding that of the last bracket) and the updating of the IRS brackets by 7.4% (as opposed to the 5.1% proposed by the government ) other proposals of the PSD were already known and formalized in parliament today.
When asked if there is any expectation regarding the PS’s approval of any of the proposals, the parliamentary leader replied that he had no indication from the socialists.
“We will see how the PS decides its vote,” he said, reiterating that this is “a budget that is far from the needs of the country” as “it does not support families, does not defend companies and leads the country to impoverishment”.
Source: DN
