Parliament does not approve government measures until it votes in favor of the PS

Parliament on Friday approved the government’s draft law that includes three measures to mitigate the impact of the price hikes, including the draft law that sets for 2023 a different update of pensions than the one foreseen in the law in force.

The diploma was generally approved with votes for PS, abstentions from PSD, Chega, PAN and Livre and votes against by IL, PCP and BE.

The government’s proposal provides for a transitional arrangement for the updating of pensions in 2023, with increases between 4.43% and 3.53%, depending on the amount pensioners receive, after the executive has already decreed the payment of has approved an extraordinary supplement, already in October, equal to half-board.

Of the package of measures announced last week, this has drawn the most criticism, with the opposition accusing the government of “playing a trick” and cutting future pensions for failing to set the basis for the 2024 increase, compared to what would happen if the pension update law were applied in 2023.

The government has indicated that this solution will ensure that the formula is fully implemented next year and that the sustainability of social security is guaranteed.

The package approved on Friday also includes the ‘brake’ on rents, which will have an increase limited to 2% in 2023, with the measure applying to all tenants with contracts until December 2022.

As a counterpart to this rent increase limitation, landlords will receive an allowance in the form of IRS or IRC, as envisaged in the proposal, as part of the rental income is excluded from taxation.

The third measure of the package to mitigate the impact of the price increase on household income included in the bill is the reduction of VAT on electricity from the current 13% to 6% for consumption up to 100 kWh per month (150 kWh per month). large households) for periods of 30 days and meters with a capacity of less than 6.9 kVA.

The electricity measure will take effect on October 1, 2022 and will last until December 31, 2023.

It was agreed at the last conference of leaders that the diploma will return to the final global vote at the next plenary vote on September 22, so the specialty process will have to be accelerated.