Employers ask less tax burden for companies and unions relief in the IRS

O Government and the social partners will meet on Wednesday in Social Concertation, a meeting with the presence of the Minister of State and Finance, Joaquim Miranda Sarmento, for the submission of information on the proposal for a State Budget for 2027 (OE2027), the discussion on the transposition of the Salary Transparency Directive is still planned.

In a written response to Lusa, the President of the Confederation of Commerce and Services of Portugal (CCP) points out that the confederation is preparing “a package of measures with fiscal, labor and economic impact”, which is expected to be taken into account in the next OE.

“ In general, we want the OE to materialize a real reduction in the tax burden imposed on the national business fabric, mostly composed of micro, small and medium-sized enterprises, serving as an oxygen balloon to bear the increasing operational costs,” adds Gustavo Paulo Duarte, proving confident that “there are measures that will be consensual with a positive impact on the national economy.”.

Also the president of the Confederation of Farmers of Portugal (CAP) wants to see tax measures that “promote the provision of housing for workers by employers” and that “contribute to a more effective fight against fires and protect and support the forest sector”.

Álvaro Mendonça and Moura also require fiscal measures to enhance the generational renewal of the agricultural sector, warning that “the continuity of young people in the activity is a huge challenge for the maintenance of the food production task.”.

The Business Confederation of Portugal (CIP) also calls for a reduction in the tax burden for companies, but also for families, advocating a gradual reduction in the rate of IRC and insisting “the progressive elimination of spills, as well as the strengthening of tax incentives in CRF specifically directed to investment, scale increase and recapitalisation of companies”.

Recalling that these measures “are in line with the Government’s Programme”, in a written response to Lusa, the confederation led by Armindo Monteiro also urges the Government to reduce autonomous taxation, “with a view to its total elimination”, as well as to exempt from TSU and IRS the “voluntary contributions of the employer and worker to supplementary retirement instruments through reform plans”.

In turn, also in a written response to Lusa, the trade unions call on the Government to take measures that will help “to improve the living conditions of workers and families”.

In this way, the UGT advocates the revision of the tripartite agreement on wage valuation and economic growth for 2025-2028, considering that a possible review “cannot go hand in hand with a fiscal policy that values labour income and fosters productivity, in particular through an appropriate fiscal effort in the IRS and the appropriate updating of the levels and other fiscal parameters”.

During the debate on the motion of censure presented by the Aquida, the Prime Minister announced a lowering of the IRS rates from the 1st to the 6th steps of income, which will be felt by taxpayers from November, through a reduction in monthly retention rates.

At the same time, the trade union centre led by Mário Mourão urges the government to take measures that discriminate positively against collective bargaining, which responds “to the urgent problems of the Portuguese, from housing to fuel to essential goods”, as well as to maintain “a high level of public investment, including in public services, qualifications, innovation and infrastructure, preventing the end of the RRP cycle in 2026 from resulting in a fall in investment in 2027”.

“For the UGT, fiscal responsibility and social progress are not incompatible objectives,” they signal, considering that the OE2027 “should contribute simultaneously to strengthening the country’s productive capacity and increasing wages, reducing inequalities and improving living conditions.”.

Also the Secretary-General of CGTP claims “a new fiscal policy, in a sense contrary to what has been pursued, to alleviate taxation on the incomes of those who work and worked and to focus on those of the large capital who pay little or no taxes in our country”, as well as the strengthening of public services and the social functions of the State, with the provision of human resources, equipment and infrastructure.

It also hopes that Miranda Sarmento will give details about the valorization of public administration workers, even if this matter is discussed with industry unions.

With regard to the trajectory of the national minimum wage (which is defined by decree-law), the trade unions consider that “there is margin” and “it is imperative” the high revision of the value provided by the agreement (which stipulates that it rises from the current 920 euros to 970 in 2027).

“ This is the year in which we can make a greater quantitative leap, not always waiting for a future moment to do so”, says the UGT, refusing to anticipate a concrete value because the UGT's Claim Policy has not yet been approved for 2027.

In turn, CGTP argues that the national minimum wage rises to 1,100 euros, starting on January 1, next year.

On the other hand, the business confederations heard by Lusa remove a possible high-value review, with the CCP arguing that “the administrative fixation of the minimum wage crushes competitiveness and the ability to value intermediate wages” and to argue that “the worst enemy of the average wage is the decree of the minimum wage”.

The CAP, in turn, places the burden on complying with the agreement in force, stating that “it has to be analysed as a whole”, as the increase to EUR 970” presupposes the adoption of countermeasures that promote the competitiveness of the economy as a whole.”.

At the same time, the CIP considers that “the conditions to review what has been agreed in the medium term” are not met, since “the assumption of increased productivity has not been achieved”.

“ We guarantee the commitment of the CIP to ensure what is foreseen in terms of the rise of the NMS. This despite the fact that the conditions for this increase are not verified”, he adds.

Lusa also contacted the Confederation of Tourism of Portugal (CTP) which preferred not to comment.