The Portuguese Prime Minister, Luís Montenegro, announced two economic support measures during the debate in Parliament on the motion of censure presented by the Chega party against the Government. The announcement was made in the opening speech of that debate.
The first measure consists of granting an extraordinary supplement to pensioners, progressively, up to the value of 1,611.13 euros. This support represents an investment of approximately 400 million euros and will be paid together with the December pension.
The second measure aims to support the middle class and consists of a reduction of IRS up to the 6th bracket, also worth 400 million euros. This tax reduction effectively covers all IRS taxpayers, including those with the highest incomes, due to the progressivity of the tax.
According to Montenegro, this tax relief will be felt already in November, through a reduction in source tax withholdings both in salary and in the Christmas bonus. The two measures will be implemented at the Council of Ministers next week.
