Former Secretary of State in António Costa’s governments expressed significant criticisms during the political declarations session at the Standing Committee of the Assembly of the Republic.
Based on the latest indicators reflecting the evolution of the Portuguese economy, António Mendonça Mendes stated that contrary to the promises made by Prime Minister Luís Montenegro, there has been an increase in the tax burden on companies and families.
“What the outgoing prime minister once described as a fiscal onslaught is now the result that the AD Government has to present. So far, we have not heard an apology from the Government and the AD leaders to the Portuguese people, as they have consistently been misled and deliberately tried to mislead the public,” he asserted.
António Mendonça Mendes, a member of the National Secretariat of the PS, further pointed out that “the PSD and CDS now have the second highest tax burden of the century to show for their efforts.”
“I repeat, the second highest tax burden of the century,” he emphasized, before addressing the changes in tax withholding scheduled for implementation from September 2024.
Mendonça Mendes expressed his belief that, due to the changes enacted by the current Government, tax refunds would now significantly decrease, potentially resulting in some taxpayers having to make additional payments.
“Since yesterday [Monday], the Portuguese people have started realizing that their IRS refunds will substantially decrease this year compared to last year. Many taxpayers will transition from receiving refunds to now having to pay taxes—and this will occur within the next few weeks,” he noted.
The PS leader subsequently accused the Government of updating IRS withholding rates “with a purpose that is reprehensible on all levels.”
“The Government executed a fiscal sleight of hand last year with the revision of withholding tables. A sleight of hand with three objectives,” he stated.
According to the former socialist Secretary of State, the Government aimed to “create the perception of income recovery among Portuguese citizens” and, additionally, “stimulate private consumption during the Christmas season to present better GDP growth in the last quarter of the year.”
As the third reason, Mendonça Mendes claimed, the Government intended to “lower last year’s budget balance, seeking to support the deception that this Government had inherited worse financial accounts than it actually did from António Costa’s executive.”
“What they have done to the Portuguese people and the country is unforgivable. The IRS bill that thousands of Portuguese citizens will have to pay in the coming weeks is the price of this Government’s recklessness and should be charged to them,” he concluded.
