The Free announced today that it will propose, within the framework of the State Budget for 2027, the reduction of VAT from 23% to 21%, a suggestion rejected by the Prime Minister, who believes it will exacerbate social inequalities.
© Leonardo Negrão/Global Images
09/10/2026
by
Lusa
O Free announced today that it will propose, in the context of the discussion of the State Budget for 2027, the reduction of VAT from 23 to 21%, a suggestion that the Prime Minister rejected, considering that it will exacerbate social inequalities.
“For 15 years VAT was 21%, 15 years later it is time to return to 21%, to lower the tax burden on those who have less and that is fair. The Free will present this decline already in the State Budget of 2027 progressively”, announced the spokesman for Free Isabel Mendes Lopes in the fortnightly debate with Prime Minister Luís Montenegro in Parliament.
The parliamentary leader also argued that not all people in the country pay IRS, tax that the government decided to lower, but all pay VAT, tax that affects more citizens with lower incomes since it is not progressive.
In reply, the Prime Minister agreed that indirect taxes “are naturally more penalties for those with lower income” but considered that “its decrease sharpens the problem” and defended the action of the side of direct taxes, such as the IRS.
Luís Montenegro also accused the Free of contradiction by proposing a reduction in VAT to 21%, which is the same tax for all citizens, thus benefiting more people with higher income.
“ Instead of having exclusive measures for those with lower incomes, social support and tax exemptions? No, let's lower the tax, which goes for everyone ", ironic.