Main points of the government’s budget proposal
The Portuguese government will present today the proposed budget for 2020. The budget will be delivered today by the minority socialist government in parliament and will be debated on 9 and 10 January
Portugal’s government is to present on Monday the proposed budget for 2020 and some measures have already been announced, such as an €800 million increase in health and an increase in the limit of profits reinvested by companies that is deductible from company tax.
The budget will be delivered today by the minority socialist government in parliament and will be debated on 9 and 10 January, with the final global vote scheduled for February 6.
Some measures of the first budget proposal of the current legislature have already been announced by the government, namely following the meetings with the social partners and fortnightly debates.
In the context of the medium-term agreement on income and productivity, the government has set the target of wage increases in the private sector above the sum of inflation and productivity over the next four years, aiming for 2.7% in 2020, 2.9% in 2021 and 2022 and 3.2% in 2023.
Health minister Marta Temido has announced an extra €800 million for the Health Operational Programme to reduce debt and increase the Portuguese Health Service’s response and production capacity, including consultations, hospitalisation, surgery and primary health care.
The government wants to increase the income tax deduction for the couple’s second child under the age of three.
The Prime Minister announced in a fortnightly debate on November 11th that he had sent a letter to the President of the European Commission, Ursula Von Der Leyen, asking for permission to change the criteria for the VAT on electricity in order to allow the rate to vary according to the different levels of consumption.
The Government may lower the autonomous taxes on lower-end company cars next year, whose rates are currently 10% for cars that cost less than €25,000 euros, 27.5% for vehicles worth between €25,000 and €35,000 and 35% when the value is greater than €35,000.
The first €15,000 of the SME tax base is currently subject to a rate of 17% and the standard rate of 21% is applied to the surplus. The two confederations want this limit to be raised to €50,000.
