The Portuguese Government announced a tax reduction in IRS that covers up to the sixth income bracket. This measure represents significant relief for Portuguese taxpayers, especially for those in the middle income brackets.
The tax reduction will have an estimated financial impact of 400 million euros. This value reflects the total cost of the measure to public finances, representing a considerable budgetary effort on the part of the Executive.
The tax relief will be implemented through adjustments to withholding taxes, both for salaries and pensions. Taxpayers will begin to feel the practical effects of this measure starting in November, with smaller monthly deductions from their income.
This intervention in IRS comes in the context of policies to mitigate the effects of inflation and the cost of living, seeking to increase the available income of Portuguese families through more favorable taxation.
