The parliamentary leader of the PSD stated today that the party has yet to decide on Chega’s proposed IRS reductions, as it has not evaluated their budgetary impact, underscoring the government’s commitment to “fair public accounts.”
When asked if the PSD is open to Chega’s proposal to reduce IRS, which differs from the government’s plan between the second and fifth brackets, the social-democrats’ parliamentary leader, Hugo Soares, admitted to not having thoroughly analyzed the project or calculated its costs, but stressed the government’s commitment to “fair public accounts.”
“This means public accounts that do not compromise budgetary targets while being fair to the needs of the Portuguese, and reducing taxes is a necessity,” he added.
Hugo Soares spoke to journalists in parliament after a PSD caucus meeting.
The PSD parliamentary leader recalled that the government set a target to reduce taxes by about 500 million euros, noting he is unaware of how much André Ventura’s party’s proposal exceeds this amount.
Nonetheless, Hugo Soares commended Chega for not opting this time to reduce taxes for the middle class and those “drowning in tax burdens” by less than the government proposed.
Chega aims for a greater IRS reduction than the government’s proposal between the second and fifth brackets, arguing this restores “tax justice” for middle and lower-middle-class families.
According to the bill submitted to the Assembly of the Republic, Chega wants to go further than the government, as already announced on Sunday by party president André Ventura.
Chega proposes a 0.8 percentage point reduction for the second and third brackets and a 0.9 percentage point cut for the fourth and fifth.
For other brackets, Chega’s proposal aligns with the government’s, despite planning to implement it with the next state budget in January 2026. The government intends to apply these tax reductions in the coming months, retroactively to January of this year.
Under the government’s IRS reduction proposal, totaling 500 million euros, there is a 0.5 percentage point rate cut for the 1st to 3rd brackets; a 0.6 percentage point reduction for the 4th to 6th brackets; and a 0.4 percentage point decrease for the 7th and 8th brackets.
