IRS of 2018: more echelons and deductions and changes in the “minimum of existence”
The scrambles on the IRS in the 2018 budget will be one of the main battlegrounds of Bloco and PCP with the Government. The policy marking that the Bloc has been doing in recent weeks with the speech of pressure on the Government to extend the number of IRS levels will not go down, although there has already been openness of both sides to a phase of this increase of Echelons. On the side of the PCP, the question of the levels is also being discussed, but also the deductions and the so-called “minimum of existence”, which was set by the previous government at 8500 euros.
The communist parliamentary leader confirmed to PÚBLICO that in the discussion of the State Budget (OE) for this year was very close to an agreement for more changes in the deductions, both in increasing limits for some expenses and in the possibility of being admitted some new type Expenditure. The same thing happened in the issue of the least existence, that the communists want to re-index to the minimum wage since the one who receives this salary is getting very close to the minimum threshold to start paying IRS.
For the Block, Mariana Mortágua says that Block and Government “have not yet said anything. The IRS is the priority, but the way it’s going to be handled is not defined and we did not even start with the most practical budget issues. ” The EUR 200 million negotiating margin amount included in the Stability Program is “insufficient” for a widening of the tax brackets which actually has an impact on the taxpayer’s pocket and cuts substantially by around € 2.7 billion in taxes Vitor Gaspar’s policies have still to be reversed (900 million were related to the surcharge).
In the case of the echelons, one of the possibilities is to unfold the first two in three or four, João Oliveira adds. But it is also true that you will have to compensate for this with higher increases in the higher echelons due to progressive taxation – anyone who earns 5000 euros a month pays on the first thousand euros the same tax as one who receives only one thousand euros. Mariana Mortágua says that “there is a problem in the structure of the IRS: those who earn a lot do not actually declare. Therefore, because the taxation is done in a pyramid, to lower the IRS to the lower would have to increase in such a way to those of the top that it ended up not compensating because the high yields are not in fact declared.