PS Proposes Permanent Zero VAT on Essential Food Items and Reduced Electricity VAT in New Election Program

In a bold move, the PS (Socialist Party) unveiled its election program this Saturday in Lisbon, led by Secretary-General Pedro Nuno Santos. The proposal includes a permanent zero VAT on essential food items, which aims to alleviate the financial burden on consumers, a measure previously implemented temporarily by the António Costa government due to inflation. This initiative is designed to ensure that profit margins for distributors do not undermine the benefits for consumers.

Another significant proposal is to apply a reduced VAT rate of 6% on electricity bills for families with a contracted power of up to 6.9 kVA, expanding the benefit to 5.3 million consumers, up from the previously covered 3.4 million.

Additionally, the PS aims to fix the price of bottled gas based on a proposal from the Energy Services Regulatory Authority (ERSE), which will periodically reassess the price cap.

In fiscal matters, the party seeks to reduce the Single Circulation Tax (IUC) for vehicles with medium cylinder capacity registered after July 1, 2007, by at least 20%. They also propose a 'zero year' for young taxpayers entering the job market, allowing them to benefit from tax exemptions without losing their first year of eligibility.

During the presentation, Pedro Nuno Santos criticized Prime Minister Luís Montenegro for lacking credibility and integrity, pointing to failures in health and housing as examples of incompetence. He emphasized the importance of evaluating the seriousness of political leaders as a reflection of government behavior.

In terms of housing policy, the PS proposes expanding rental support for middle-class families facing high housing costs and aims to gradually eliminate university tuition fees over the next decade. The program also includes plans to channel dividends from the Caixa Geral de Depósitos to finance municipal housing construction, focusing on young people and workers.

The PS envisions a minimum wage of €1,110 by 2029, proposing annual increases of at least €60 and a 5% annual rise in average salaries, aiming to reach at least €2,000 by 2029.

In health care, the PS plans to integrate dentistry and mental health into basic care services of the National Health Service (SNS) and intends to establish support for housing for doctors in underserved health centers. They propose creating 350 dental clinics across the country to ensure comprehensive public health responses.

This program reflects the PS's commitment to a stronger, more resilient National Health Service and aims to promote universal access to health care.