The PS promises to return part of the VAT paid on essential goods to families with lower incomes and to reduce personal income tax for the middle class by lowering marginal rates.
These are some of the tax proposals in the PS electoral program, which was presented today at a public session in Lisbon, attended not only by the socialist secretary-general, Pedro Nuno Santos, but also by the socialist and current finance minister, Fernando Medina, and Alexandra Leitão, who coordinated the drafting of the document.
In the document, the Socialists propose “returning part of the VAT paid on essential goods to lower-income families, including families who do not pay personal income tax,” but without quantifying the limits and proportions of the respective returns.
In addition to “reducing personal income tax for the middle class, within the budgetary margin” and “lowering marginal rates”, the Socialists promise to update the limits of the respective brackets “in line with the inflation rate, preventing taxpayers from seeing their tax bill increase as a result”.
The extension of the IRS Jovem “to all young people, regardless of their level of education, for the sake of fairness and internal consistency of the measure,” is another of the program’s measures.
The PS also proposes to “increase deductible expenditure on rent by €50 per year until it reaches €800 in 2028, relieving families of this fundamental expense” and to “reduce autonomous taxation on company cars by 20%, reducing the level of taxation on the overwhelming majority” of companies.
In the field of electricity, the party led by Pedro Nuno Santos promises to apply a rate of 6% to the first 200 kWh of monthly consumption (doubling the current 100 kWh), or 300 kWh per month in the case of large families (doubling the current 150 kWh), considering it an “essential measure to combat energy poverty”.