The proposed housing measures by the government have been criticized as a poorly executed attempt to mimic ideas from the Liberal Initiative, specifically the 6% VAT for construction, stated Mariana Leitão during a pre-campaign event in Gondomar for the October 12 municipal elections.
The legislative package is described as a poorly executed copy, prompting Leitão to extend an offer of collaboration to the prime minister for Liberal Initiative’s input, emphasizing their willingness to contribute constructively to these measures, especially as they are aligned with the PSD in Gondomar.
The Liberal Initiative has been vocal about the housing crisis, which is a significant issue with many struggling to afford home purchases or rents, noted the political leader. She pointed out that the party has repeatedly warned the government, without receiving any response.
“It is crucial to remember that this government is the same one that in 2024 proposed a housing plan which did not result in anything tangible,” she emphasized.
Luís Montenegro announced that the government will reduce the VAT rate to 6% for house construction for sale up to 648,000 euros, or for rent with moderate rents capped at 2,300 euros, with the regime effective until 2029.
According to Leitão, “the measure as designed by the government will create more bureaucracy and require promoters to pay 23% VAT initially and then undergo a bureaucratic process to recover the difference for the designated housing cap.”
For rentals, instead of fiscal adjustments, there is a need for a broad tax reduction to address the housing crisis and encourage landlords to offer their properties, she argued.
The Liberal Initiative seeks to stimulate the housing, construction, and rental markets to ensure more housing availability with less bureaucracy, fewer contractual complications, and greater contractual freedom, noting the government’s measures fall short of the nation’s needs.
In Gondomar, the Liberal Initiative is running in coalition with the PSD, led by local deputy Emídio Guerreiro, holding the fourth position on the council list, with a commitment to handle the Finance portfolio, as well as the fifth, ninth, and eleventh positions on the Municipal Assembly list.
Four years ago, the PS retained the council, securing seven seats compared to the PSD’s three and CDU’s one.
