Government to reduce IRS by 500 million this year

In terms of taxes, the Government's programme does not deviate from what has been promised since the campaign. The Government intends to reduce IRS up to the 8th bracket by 2 billion euros by 2029, with a reduction of 500 million in 2025 (in addition to the 2025 State Budget).

The Government is committed to “reviewing the IRS tax brackets to ensure that they are adapted to the reality of the Portuguese economy”. It also promises to introduce “a synthetic and comprehensive notion of income subject to IRS, which corrects the injustices and undertaxation resulting from the current restrictive definition of income subject to IRS, which allows for greater relief in marginal rates”.

The company also continues to promise a reduction in the IRC rate, gradually reaching 17% by the end of the legislature, with a reduction of up to 15% in the case of SMEs for the first 50 thousand euros of taxable profit. It once again promises a path that will lead to the elimination, “gradually”, of the progressiveness of the state surcharge.

He had already promised to do so before, but Miranda Sarmento ended up saying that the budgetary impact was too high. Now, he is talking about the subject again, but without committing to reductions or timetables.

Another objective already announced by the Government is also worth highlighting, which involves “progressively increasing the reference value of the Solidarity Supplement for the Elderly (CSI) until it reaches the amount of 870 euros in 2029, with the aim of equating it to the value of the national minimum wage in the following legislature”.

Furthermore, the Government says it intends not only to assess the accumulation of the RSI (social integration income) with other social support, but also indicates that it will review the allocation regime. And more. It even says it intends to introduce solidarity obligations, but has not implemented this. Furthermore, it wants greater monitoring of the social integration income, something that Chega has insistently called for.