“It would be very strange to see parties blocking a reduction in taxes on worker incomes,” Manuel Castro Almeida stated during the inauguration ceremony of the new logistics hub for Mercadona in Almeirim, Santarém district.
“The Portuguese would find such a reaction very strange,” added the Minister of Economy and Territorial Cohesion, emphasizing that the government aims to increase disposable income for workers to stimulate consumption.
“If there is a tax cut, more money will be available in workers’ pockets for them to use as they wish and potentially consume more,” he noted.
The official also argued that the measure should be implemented “as soon as possible.”
“If there is going to be a tax cut, let it be as soon as possible. The sooner, the better. The idea is to have it done this year,” he said.
The bill was introduced in parliament on Wednesday and proposes an additional reduction in the IRS of 500 million euros this year, with a 0.5 percentage point reduction between the first and third brackets, 0.6 percentage points between the fourth and sixth, and 0.4 percentage points in the seventh and eighth.
Meanwhile, parliament today approved the government’s request for urgency in reviewing the government’s IRS proposal, with only the PCP abstaining.
During the Mercadona logistics hub inauguration, the official highlighted the significance of the foreign investment in the region and its positive impact on creating well-paying jobs.
“It is an investment betting on Portugal, with innovation, increased competitiveness, and productivity. This is essential for raising wages,” he emphasized.
Castro Almeida also pointed out that the wages at Mercadona are “substantially higher than the national minimum wage,” which he considered a “very positive factor.”
Pointing to profit as a driver of investment and economic growth, the minister further argued that Portugal must create conditions for “more investment and reinvestment” and believed that a competitive economic system could allow for wages “at the level of what is paid abroad.”
The Minister of Territorial Cohesion reiterated the government’s commitment to reducing bureaucracy and advocated for legislative changes to speed up administrative processes.
“We want a war on bureaucracy. When the law hinders, the solution is to change it,” he stated, adding that the government is preparing changes to the industrial licensing regime.
