During the general debate on the Regional Budget (2.533 billion euros) and the Investment Plan for 2025 (1.044 billion euros) at the Madeira Legislative Assembly in Funchal, JPP parliamentary leader Élvio Sousa advocated for a reduction in VAT (Value Added Tax) by “one percentage point on both the general and intermediate rates.”
“We have thousands of Madeirans with their lives on hold,” added JPP deputy Rafael Nunes, emphasizing that reducing VAT could help alleviate the cost of living for citizens.
The deputy from the main opposition party accused the Madeira Government (PSD/CDS-PP) of refusing to lower this tax “to maintain perks,” such as “43 million euros for golf courses.”
The regional secretary reiterated the rejection of VAT reduction without altering the Regional Finance Law to ensure that the region’s revenue is not affected, asserting that “these reductions are absorbed within the corresponding value chains.”
“What leaves more money in families’ pockets and provides more availability for businesses is reducing IRS [Personal Income Tax] and IRC [Corporate Income Tax],” he stressed.
PS deputy Victor Freitas accused the Regional Government of making several false claims, particularly regarding taxes.
The socialist rejected the notion that Madeira pays “less tax than at the national level,” arguing that this would require the 30% tax differential allowed by the Regional Finance Law to be applied across all taxes.
Meanwhile, PS deputy Marta Freitas stated that the Regional Government has “cut into the dignity of workers,” questioning “where is the promised risk subsidy for nature watchers and forest rangers.”
“If cuts are to be made, they should target excesses, not the core of the workforce,” she stated.
Chega deputy Manuela Gonçalves questioned whether the “apparent structural dependence on European funds” renders regional autonomy “camouflaged” and argued that this budget continues “to sideline the real issues faced by Madeirans.”
IL’s sole deputy, Gonçalo Maia Camelo, called for an “active plan” to boost foreign investment and business attraction in the region, considering that merely reducing IRC is insufficient.
CDS-PP deputy Sara Madalena, from a party with a governance agreement with PSD, advocated for the gradual introduction of the Insularity Subsidy for all Madeirans to avoid impacting businesses.
PSD deputies, who support the government, frequently countered the opposition’s criticisms, accusing these political forces of creating “noise.”
The Budget and Investment Plan proposals are being discussed and voted on in the general assembly today, with a detailed debate continuing on Tuesday and Wednesday. The final global vote is scheduled for Friday.
Opposition parties have indicated they will present around seventy proposed amendments.
The documents were delivered to the Legislative Assembly by the Finance Secretary on June 2 and have guaranteed approval, as PSD and CDS-PP have formed a parliamentary and governance incidence agreement following the early regional elections on March 23, ensuring an absolute majority.
The Madeira parliament, comprising 47 seats in the chamber, includes 23 deputies from PSD, 11 from JPP, eight from PS, three from Chega, one from CDS-PP, and one from IL.
