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The António Costa Government wants to implement a reduction in the withholding rate at origin for all workers, a measure that will increase the income of at least two million Portuguese in the next year.
According to the newspaper Expresso, this measure was approved by the Council of Ministers last Thursday and in practice will give the Portuguese an indirect increase in their monthly salary (since the amount that the State would retain will be less) without this, at least in the practice, to lower taxes or jeopardize your income. In practice, this will also cause the taxpayer to be compensated with a lower IRS refund later, or even be forced to pay.
Despite being an important measure to combat the economic crisis caused by the pandemic, this decision can also be useful in terms of synchronizationafter all, Portuguese taxpayers will feel the best of what they have (more money at the end of the month) in the year of the municipal elections (2021) and the worst (the lowest IRS profitability), when there is no longer any suffrage higher.
Apparently, the reduction in the rate will be, on average, of the order of 2%, which will be applied progressively (whoever earns the most has the least and vice versa). Taxpayers will also not be covered by this benefit because they have very low incomes and are already exempt from paying the IRS: there are more than two million people in this situation.
Although the Left Bloc continues to consider “insufficient”, says the Express, the Government’s commitments in relation to its proposals for State Budgets, one of which was accepted was the increase in unemployment benefit by 60 euros for those who discounted the minimum salary . Despite BE’s non-compliance, which says it still has nine proposals (of the 19 yet to be closed) awaiting a counter-proposal from the Government, this remains an important advance.
The resolution of the minimum wage remains unresolved, a portfolio that remains blocked between the 35 euros more that the Block demands and the 23.75 euros that the Government insists not to exceed. Areas such as Health or the Novo Banco issue do not seem to have an end in sight either.
