Government today approves pension bonuses and relief from the IRS: Are you getting backup?

O Government will meet this Thursday in the Council of Ministers, beginning at 9:30 a.m., according to an agenda note from the Prime Minister's office, Luís Montenegro, sent to the editorials. On the table will be the approval of pension bonuses and the relief of the IRS. In addition, the Government may also announce support for four sectors due to increased fuel prices. 

Supplement for Pensioners and Relief at IRS

The Prime Minister announced, last week, the allocation of aextraordinary upgrade for pensioners who receive up to EUR 1,611 and a tax relief up to the sixth tier of the IRS.

The announcement was made by Luís Montenegro in opening the debate in Parliament on the motion of censure of the Aquis to the Government, saying that the two measures would be implemented in the Council of Ministers this week.

“The first: to gradually supplement pensioners by EUR 1,611,13, which represents a value of around EUR 400 million that will be paid together with the December pension,” he said.

The second, aimed at “supporting the middle class, will be “a reduction of the IRS by the sixth step, to a value of EUR 400 million”.

“ This decline covers, in practice, all IRS taxpayers, even those who are above incomes, given the progressive nature of the tax. This tax relief will already be felt with a reduction in the retentions of the source in November, in the salary and Christmas subsidy ", said.

According to the Prime Minister, the two measures “will cover more than two million pensioners and more than two million households.”

“ And they are only possible thanks to the economic performance of the country and the sound financial and budgetary management of the government. We are not talking about more debt, we are not talking about illusions for the future”, he said.

Montenegro has ensured that this will not compromise the right accounts, saying that “ruling responsibility is knowing how to distribute the results without destroying the conditions that made them possible.”.

“ We in the government do not accept the false choice between right accounts and social justice. We prefer fair accounts, the condition to support those who need, reduce taxes and protect the country in the most difficult moments ", said.

Government may also approve support for four sectors

O Government is preparing new support for freight, fire, social and taxi transport, to compensate for the impact of rising fuels, announced the Minister for Environment and Energy, Maria da Graça Carvalho, without realizing when these measures would be adopted. 

“ We are now preparing a set of support that we have already had and that ended on June 30 and that we will resume” for those sectors, said Maria da Graça Carvalho, adding that the proposal should be taken to the Council of Ministers.

The minister spoke to journalists at the inauguration of Nãm Fungi Factory, a production unit that turns coffee lees into mushrooms, Grupo Nabeiro-Delta Cafés and Nãm, which took place in Odivelas, Lisbon.

The governor explained that the measures should follow rules similar to those applied earlier and may take the form of a vehicle support or a discount or subsidy for each litre of fuel consumed, for example in the case of taxis.

According to Maria da Graça Carvalho, the government maintains as a policy “to help sectors that need the most and not to make general aid”, also pointing to the use of additional VAT revenue to reduce the Tax on Petroleum and Energy Products (ISP).

For the ruler, the executive should not “win with the crisis.”.

The minister also indicated that the government has already allocated around EUR 1 billion through the ISP discount and estimates that this figure will reach EUR 1.3 billion by the end of the year.

Asked about the possibility of imposing a ceiling on fuel prices, Maria da Graça Carvalho considered that this is an “exceptional and last resort measure” because it may disturb the functioning of the market.