The Chega party has proposed a legislative initiative in the Assembly of the Republic seeking to surpass the government’s current tax proposals, as announced by party leader André Ventura. Chega suggests a reduction of 0.8 percentage points in the second and third tax brackets, and a 0.9 point reduction in the fourth and fifth brackets.
For other tax brackets, Chega’s proposal mirrors the government’s but is set to become effective with the next State Budget in January 2026. In contrast, the government intends to implement these tax reductions in the coming months, retroactive to January of the current year.
The government’s proposed total tax relief of 500 million euros includes a reduction of 0.5 percentage points for the 1st to 3rd brackets; 0.6 points for the 4th to 6th brackets; and a reduction of 0.4 points for the 7th and 8th brackets.
In their rationale, Chega criticizes the government’s proposal as a substantial tax reduction that ultimately became a “flop,” resulting in minor or negligible adjustments. The party argues that higher-income households will benefit more from this reduction than middle and lower-middle-class families and insists that their proposal seeks to restore fiscal fairness by ensuring the tax relief reaches those in genuine need more effectively.
In another proposed bill, Chega suggests increasing the rental expense deduction by 50 euros, up to a total of 850 euros. Chega lawmakers highlight that “in recent years, housing prices and rents in Portugal have risen sharply, putting increasing pressure on family budgets.”
They warn that “for many families, housing has become a constant source of concern and instability.” Chega emphasizes the need to “rethink fiscal policies supporting housing,” indicating that “one of the most impactful measures would be allowing families to deduct all housing-related expenses on their taxes,” providing significant tax relief, particularly for vulnerable households and the middle class, which currently bears a large portion of the country’s tax burden.
The party maintains that this is “more than an incentive; it is a matter of social justice: the State should acknowledge that housing is an essential need and reflect this in the tax system.”
