Sunday, February 14, 2016

Mario Centeno reaffirms that the tax burden will decrease – Digital Journal

“There is a clear reduction in what is the weight of tax revenues to GDP,” he said Mário Centeno a clarification session organized by the Socialist Party (PS) in the Algarve capital.

The Minister explained that “there is a reduction in GDP weight of 0.6 percentage points of direct tax revenues” mainly IRS (tax on income of individuals) and IRC (tax on business income).

on the other hand, “there is an increase of almost 0.4 percentage points the share of indirect taxes in GDP.”

Mario Centeno concludes that “connecting these two values, a decrease [0, 6 percentage points] of direct taxes and an increase of 0.4 indirect, we have a reduction of revenue in GDP. “

” the concept of tax burden, technically considered, can lead to the inclusion of contributions also social, “said the minister, adding that” these contributions in 2016 will grow above GDP growth by virtue of the growth of disposable income of households and workers and what is the growth of employment. The combination of these two factors makes these contributions to grow slightly faster than GDP. “

The Ministry of Finance had already clarified on Friday evening that” the weight of tax revenue to GDP decreases 0.2 percentage points. That is why the finance minister has said that there is a reduction in the tax burden in 2016 “.

In the debriefing session which was attended by about two hundred people, Mário Centeno again insisted on the idea that “the end of austerity must not be confused with lack of rigor” and that the nervousness in the capital markets should be countered with “rigor that you have to put in all the work of the State” Portuguese.

Digital Money with Lusa

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