The Council of Ministers approved this week an 800 million euro financial package that includes an extraordinary supplement for pensioners and a new IRS reduction. The announcement was made by Prime Minister Luís Montenegro during the debate in Parliament on the motion of censure presented by the Chega party.
The first measure consists of a bonus for pensionists with income up to 1,611.13 euros, paid progressively together with the December pension. This support covers more than two million pensioners and has an estimated budgetary impact of around 400 million euros.
The second measure provides for the reduction of IRS rates from the first to the sixth income bracket, with immediate effects on November tax withholdings, covering salaries and the Christmas bonus. Due to the progressive nature of the tax, the reduction indirectly benefits all taxpayers, even those in higher brackets. This measure represents an investment of 400 million euros and reaches more than two million households.
According to Luís Montenegro, this package is only viable thanks to the country's economic performance and the rigorous management of public accounts. If it obtains parliamentary approval, this will be the third additional mid-year IRS reduction since the start of his government.