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O governo de Portugal, liderado por Luís Montenegro, não aceitou uma proposta do Partido Socialista (PS) para mudar impostos de empresas . A proposta queria dar incentivos para investimentos . O governo acha que isso não teria efeito imediato. As negociações continuam, e a aprovação do orçamento 2025 é importante para a estabilidade econômica.
Translation
The government of Portugal, led by Luís Montenegro, has not accepted a proposal from the Socialist Party (PS) to change corporate taxes. The proposal aimed to provide incentives for investment. The government believes that this would not have an immediate effect. Negotiations continue, and the approval of the 2025 budget is important for economic stability.
Exercise: Text comprehension
Question 1: Who leads the government that rejected the PS proposal?
Luís Montenegro leads the government that rejected the PS proposal.
Question 2: What did the PS proposal aim to do for businesses?
The PS proposal aimed to give incentives for business investments.
Exercise: Vocabulary
Read the full story
▌07/10/2024
The Portuguese Government, led by Prime Minister Luís Montenegro, has rejected a proposal from the Socialist Party (PS) to modify the approach to corporate tax reductions. This proposal was a part of ongoing negotiations surrounding the nation's 2025 budget, known as the Orçamento do Estado (OE2025).
The PS, under the leadership of Pedro Nuno Santos, suggested transforming a planned decrease in the Corporate Income Tax (IRC) into a fiscal credit aimed at boosting investment. This alternative was presented as a strategy to move the budget discussions forward. However, the government viewed this measure as unlikely to have much immediate effect, given the current economic growth of approximately 2 to 2.5% and existing investment incentives already in place.
The government aims to implement a more comprehensive and structural change to the IRC policy. Despite rejecting the specific PS proposal, government representatives indicated a willingness to continue negotiations, signaling openness to other potential agreements with the Socialist Party.
Portuguese Government Rejects PS Proposal on IRC (Illustration)
The discussions between the government and the PS have been characterized by disagreements over key budgetary issues, notably the reduction of both the Youth Personal Income Tax (IRS Jovem) and the corporate tax rate. With only days remaining before the budget must be finalized and submitted to the Portuguese Parliament, these issues remain significant points of contention.
The situation is further complicated by the fact that the ruling coalition, comprising the Social Democratic Party (PSD) and the People's Party (CDS-PP), lacks an outright majority in Parliament. Consequently, securing the support of opposition parties like the PS or even the Chega party is crucial for the passage of the OE2025.
Despite the current stalemate, negotiations are expected to continue until the approaching deadline for the budget presentation. Observers note the importance of reaching a consensus that aligns with national interests and fosters economic stability while addressing the pressing social issues outlined by the government and opposition parties alike.
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