“There is a significant discrepancy in the IRS [Income Tax on Individuals], which is more than just a fiscal problem: it’s a social and territorial issue, reinforcing inequalities and compromising the democratization of access to higher education,” stated Rui Morais, president of the National Federation of Private and Cooperative Higher Education (FNESPC).
The fiscal proposal “For an IRS that Accommodates the Real Cost of Higher Education,” set to be sent to the Ministry of Finance, Ministry of Education, Science and Innovation, parliamentary groups, among others, was approved by majority at the National Meeting of Student Association Boards (ENDA) held in Vila do Conde over the weekend.
This marks the first legislative proposal presented by this federation since its reactivation, highlighting the need to update current fiscal tools to align with the present-day realities of families.
The FNESPC document also suggests that the periodic revision of the maximum limits of education expenses under IRS should be conducted by the Ministry of Finance to keep pace with the evolving real costs faced by families.
According to private and cooperative higher education students, there is a significant gap between the annual expenses of students and the current tax regime, which “covers only between 09% and 12% of the real cost for families with students, particularly those who are relocated and working students.”
“With inflation, rising rents and essential goods, families are feeling increased pressure,” emphasized Rui Morais, a student at the Instituto Superior Miguel Torga in Coimbra.
As stated by the FNESPC president, the average monthly rent, “close to 450 euros, averages 5,400 euros annually, exceeded by the current legal tax deduction ceiling alone.”
A relocated student “spends annually 8,857 euros in public higher education and around 11,880 euros in private higher education.”
The federation points out that the amounts set by law for tax deductions — 800 euros for non-relocated students and 1,100 for relocated students — do not match the current expenses of higher education students.
“Rent, food, transportation, and all associated expenses necessary for attending higher education weigh equally on any student, and this is a reality the country cannot continue to ignore,” highlighted Rui Morais.
By proposing regular reviews of tax ceilings, the National Federation of Private and Cooperative Higher Education aims to “ensure closer alignment between tax deduction limits and the real cost evolution experienced by families and higher education students.”
“This motion aims to make higher education more attractive, fairer, and less dependent on financial capacity or origin’s postal code. This fiscal update is directed at all students, whether from public or private institutions, and for all families with unrecognized burdens by the State,” concluded the student representative.
The FNESPC was reactivated in May 2022, encompassing 65 private higher education institutions, and its mission is to represent these academic and student associations.
The proposal will now be forwarded to the Government and the main entities of the education and finance systems.
