Portugal's New Government Unveils Bold Reforms: Tax Cuts, Wage Hikes, and State Overhaul
Dnoticias.pt8 hours ago
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Portugal's New Government Unveils Bold Reforms: Tax Cuts, Wage Hikes, and State Overhaul

Politics
politics
reform
tax
immigration
housing
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Summary:

  • State reform aims to reduce bureaucracy without layoffs or salary cuts.

  • Tax cuts include IRS reductions up to the 8th bracket and IRC cuts to 17% by 2029.

  • Immigration policy to be tightened, with stricter citizenship requirements.

  • Health and education reforms focus on sustainability and accessibility.

  • Housing initiatives target accelerated construction and tax reductions.

  • Defense spending to hit 2% of GDP by 2024, emphasizing dual-use technologies.

The Portuguese government's program, set for parliamentary debate this Tuesday and Wednesday, includes significant measures from the AD's electoral agenda, such as tax reductions and increases in wages and pensions, alongside new commitments.

Key Highlights

  • State Reform: A dedicated ministry will oversee a comprehensive overhaul, aiming to reduce bureaucracy and streamline public administration without layoffs or salary cuts.
  • Labor Laws: Proposals include revising strike legislation, introducing flexible work hours, and enhancing parental leave options, including for single-parent families.
  • Immigration Policy: Plans to tighten citizenship requirements and regulate migration flows to match public service capacities.
  • Economic Measures: IRS cuts up to the 8th bracket, totaling €2 billion by 2029, and a gradual IRC reduction to 17%, with SMEs benefiting from a 15% rate on the first €50,000 of taxable profit.
  • Health and Education: Revisions to the Health Bases Law and the creation of regional emergency teams. In education, a ban on smartphones in primary schools and a new support system for underprivileged students.
  • Housing Crisis: Initiatives to accelerate construction, reduce taxes on renovations, and simplify licensing processes to address the housing shortage.
  • Justice and Security: Efforts to speed up judicial processes, combat corruption, and enhance public safety through increased police visibility and community policing.
  • Defense: Accelerated investment to reach 2% of GDP in defense spending by 2024, focusing on dual-use technologies and supporting the national defense industry.

This ambitious agenda reflects the government's commitment to economic growth, social welfare, and public service reform, setting a transformative course for Portugal's future.

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