Aliança Democrática coalition seeks fresh tax cuts if it wins the election

Portugal’s Minister of Finances in the current caretaker government, Joaquim Miranda Sarmento, says there is room for “ambitious IRS tax cuts” if it wins the forthcoming general election on May 18.

In an interview with the business daily Jornal de Negócios and Antena 1, the minister did not reveal any specific numbers, but said any tax cuts would be “focused on the middle class”.

In addition to a slash in IRS, the Finances minister said that if the PSD won the elections, it would aim to bring IRC corporation tax to 15% – a goal that it had set out in the previous general election campaign.

In the interview, the minister emphasised that in 11 months of governance, Portugal had become more competitive and enjoyed greater economic growth, higher wages, higher national insurance revenues, and fast-track public investment on projects of national importance through the Recovery and Resilience Plan. (PPR)

“We see the elections as an opportunity to bolster a path with a programme designed for the next four and a half years,” he said.

Joaquim Miranda Sarmento added that in just 11 months the government had carried out one-third of its electoral programme laid out in its party manifesto, not to mention many others that were not in the programme.

He said that looking back he would have liked to reduce IRC tax more and IRS for the middle classes. “Unfortunately, the PS party (opposition Socialists) and (far-right populist party) Chega didn’t allow it.”

“Our policy to reduce taxes remains. The surpluses that we’ve made have to be handed to those who generated them. Good budget management helps, but praise should go to the Portuguese and the country,” he said, adding that the government had already reduced IRS by €1.8Bn in 11 months.