Government promises, but “does not guarantee” gradual reduction of surcharge … – publico

                 

                         
                     

                         
                     

                         

                 

 
                         

Long and filled in dossiers to approve the meeting of the Council of Ministers gave the green light on Thursday to the National Reform Plan and the stability program, financial strategy papers where the executive proposes the gradual reversal of cuts in wages of civil servants at a rate of 20% per year (restoring total compensation only in 2019) and the descent also progressive, the IRS surcharge over four years.

                     

                          The Finance Minister announced this afternoon that the guidelines be sent to the European Commission acknowledged, however, that the executive can not commit to the action it is now present, since they are to apply next legislature. Under the new rules of economic governance in the EU, the government must send its multi-year reform program to the European Commission by the end of April, so that Brussels has ruled in May.

In the proposal for the IRS surcharge, in force since 2013, only taxpayers fail to pay in 2019. In this scenario, the descent begins next year and extends the next three years. The negative impact on tax revenue is 760 million euros in four years.

Maria Luís Albuquerque explained at a press conference that the reduction of the surcharge in 2016 is a measure separate from that was included in the budget 2015 predicting that next year, there is a refund (partial or total) of the surcharge in relation to the amount paid by taxpayers this year if the VAT and IRS revenue are above the budgeted forecast.

For 2016, the planned reduction is 0.875 points, ie a surcharge of room (to 2.625%), the same cut-off rate set for each of the following years until the extraordinary rate desparecer, said Maria Luís Albuquerque. By itself, the annual impact is 190 million euros. But the accounts are not made in relation to the budgetary impact of the two measures next year:. Reimbursement that may happen and the descent of the surcharge

Asked about that effect on public accounts, the minister said have constructed, given that it is unclear whether the tax credit the surcharge is realized. “At this moment we estimate,” he said, showing up however, convinced that the reimbursement will happen. Although the impact on government accounts will be felt in the same year, the Minister distinguished the nature of the two measures (tax credit and reduction rate) and ensured that, in budgetary terms, “without prejudice to the other.”

With regard to cuts in the public sector, the government plans to gradual replacement of reduced remuneration at a rate of 20% per year, similar to what is already happening in 2015. The measure, said Maria Luís Albuquerque, will be integrated the State Budget for 2016 and is expected to cost 150 million euros a year.

In 2015, state workers who have gross wages above 1500 euros already viewed reversed 20% of the cuts and the measure now presented provides that the rate of reversal remains beyond.

Faced how can the executive to ensure that measures promised now going forward, given that are to apply in 2016, a next term, the minister acknowledged: “The government does not guarantee these measures. But with this government the Portuguese know what count. ” And took the opportunity to leave a barb to PS, criticizing what it considers to be the absence of the higher starting the opposition proposals. “So far we know nothing.”

“What links the country [the measures to be submitted to the European Commission] is compliance with the rules [budget],” he said. And again criticized the Socialist Party. The contribution of the PS said, is “too vague to be useful” to the strategy presented by the Government, although the minister’s position is an invitation to the involvement of PS and “opening to welcome proposals that may be presented in Parliament “by the various parties.

The reduction of the surcharge, the CDS wanted to see already included in the budget this year but was postponed, will still be dependent on the evaluation of the reversal of cuts for civil servants, explained the Minister of Presidency and Parliamentary Affairs, Luís Marques Guedes

“If, for example -. and I’m putting as mere hypothesis – the country option is reset faster wages probably will not be able to remove the surcharge so quickly, “he said, recalling the decision of the Constitutional Court about the cuts in public sector salaries, which only made possible the 20% replacement model of the cuts in 2015, because there was still enough budget information the following years.