In the final stretch of the debate concerning the Government’s proposed IRS reduction, held in the Assembleia da República, Chega leader André Ventura announced his party’s readiness to vote in favor of the initiative if the Government commits to a 0.3 percentage point reduction from the second to the fifth tax bracket.
“Chega will not only support the Government’s proposal by voting in favor but will also withdraw its proposals from today’s vote if the Government commits to sending this signal, not for those who earn more, but to signal support for those who work and earn less in Portugal,” he stated.
In response, PSD parliamentary leader Hugo Soares expressed willingness for his party to meet Chega’s proposal, which involves a more significant reduction of IRS rates for the second to fifth income tiers than the Government is currently suggesting in the law presented to parliament.
Hugo Soares indicated openness to including a provision in the 2026 State Budget to this effect.
In the proposal put forth by Chega, the party advocates for an additional reduction of 0.3 percentage points in the IRS rates for the second, third, fourth, and fifth income brackets, compared to what the Government proposes.
For the second income bracket, Chega suggests lowering the IRS rate to 15.7%, for the third a decrease to 21.2%, for the fourth a reduction to 24.1%, and for the fifth a lessening to 31.1%.
Chega’s initiative anticipated that this reduction would only advance in 2026, as it stipulated that the law would only come into effect “after the publication of the subsequent State Budget” following the approval of this legislative project.
