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The announcement was made by Siza Vieira on “behalf of the entire Government”: the so-called support for progressive recovery, which has been widely criticized by business associations, will be reformulated to guarantee more generous financing to companies with “more significant losses “, particularly in the tourism sector. The economy minister promises to resume exemptions from the single social tax, adding that the measure will “probably” extend beyond January 2020.
The description of the intention, which had already been admitted by the Prime Minister, was made in the closing speech of the V Tourism Summit.
“When we formulate the layoff succession measures we have – we will not ignore it – a more intense recovery during the summer of the demand directed to the tourism sector,” the minister began to say. At this time we have to recognize that this has not happened and we are going to help more intensely the efforts of entrepreneurs to keep their jobs, which will be so important to maintain their resilience.
Siza Vieira said that the special dismissal measure that is currently in force will be reformulated, which consists mainly of time reduction schemes. Without expressly saying so, the minister hinted that the support could once again finance situations of contract suspension, as happened with the simplified dismissal, launched in a regime of total confinement.
“The support regime for progressive recovery was based on the idea that workers would have some occupation necessary due to less demand. There are sectors, there are companies with very important losses where there is no demand that justifies even a partial occupation. And, therefore, the progressive recovery support regime will be made more flexible so that companies with the most significant losses can have a total reduction in their work capacity ”, he stated.
In contrast to the so-called simplified layoff, the new support for progressive recovery, which has been in place since August, makes TSU’s exemption dependent on the size of the company. The minister opens the door to a setback, stating that for companies in these circumstances the regime will be reviewed.
We will also ensure that, for companies in this sector, the TSU exemption regime that was in force in the quarter that is now ending is still applied ”.
Siza Vieira admits, in fact, an extension of the regime beyond December of this year. “The Government is aware that this regime”, which will now be modified to guarantee “a much more significant support from the State”, will have to “most likely be extended into 2021”.
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