The maintenance of the Municipal Property Tax (IMI) rate and the return of the Individual Income Tax (IRS) participation was approved in a private meeting of the executive council, led by the coalition Por ti Lisboa (PSD/CDS-PP/IL) and presided over by Carlos Moedas (PSD).
The IMI proposal, which sets the rate at 0.3%, the lowest permitted by law, was approved with favorable votes from the Por ti Lisboa coalition, PS, Chega, and PCP, and abstentions from BE and Livre, according to municipal sources.
The same proposal approved increases and reductions in the tax, including a 30% surcharge for urban buildings in disrepair with pending repairs mandated by the municipality, and 30% reductions for properties classified as of public, municipal, or heritage interest.
The city will also maintain the so-called family IMI, with a reduction of 30 euros for families with one dependent, 70 euros for two dependents, and 140 euros for families with three or more dependents.
The IMI rate for urban buildings can vary between 0.3% and 0.45%, with municipalities determining the specific rate within this range.
The proposal for a full 5% IRS refund was approved by a majority, with favorable votes from the Por ti Lisboa coalition, abstention from PS, and opposition from PCP, BE, and Livre.
In a reaction sent to Lusa, a Livre council source explained that they voted against the full IRS refund proposal, arguing it “exacerbates inequalities” and compromises fiscal justice.
Councilor Joana Alves Pereira noted that by approving this measure, the municipality forfeits “90 million euros in revenue,” which “primarily benefits those with higher incomes.”
On the IMI matter, Livre believed the opportunity to introduce additional conditional surcharges was missed.
The Bloco de Esquerda also stated it voted against the full IRS refund proposal, considering it “an unfair and socially unbalanced fiscal expense.”
According to BE, the majority of the 90 million refunded “is allocated to the wealthiest 10% of Lisbon’s taxpayers, who represent the wealthiest 4% in Portugal.”
Both proposals will need further discussion and voting by the Lisbon Municipal Assembly.
Currently, the executive, composed of 17 members, includes eight elected from the PSD/CDS-PP/IL coalition, who are the only ones with designated responsibilities and govern without an absolute majority. In opposition are four councilors from PS, two from Chega, one from Livre, one from BE, and one from PCP.
