Government tries to convince employers with tax benefit to “neutralize” the ISP worsening – publico

                 

                         
                     

                         

                 

 
 

The meeting between the Government and employers’ confederations to discuss the budget proposal for 2016 lasted two and a half hours and in the end, only the finance minister said. While the Confederation of Portugal Farmers (CAP), the Confederation of Trade and Services of Portugal (CCP), the Business Confederation of Portugal (CIP) and the Confederation of Portuguese Tourism (CTP) vowed on Wednesday the release of a position joint on the issue, the minister Mário Centeno has ensured that the State Budget (OE) for 2016 provides for a tax benefit that will enable companies to neutralize the effect of increasing the tax Oil Products (ISP).

in a statement to journalists, without any questions, Mário Centeno ensured that the meeting was “very useful” because “it was made clear some pointed questions about the OE”, including tax matters. the Finance Minister assured that the ISP “will not have an impact on what are company accounts because the government has a request for legislative authorization [in OE] which will neutralize this impact through the reflex increase in the accounts of these companies in terms of reduction of this additional cost resulting from increased ISP ” he said the official, quoted by Lusa.

According to Centeno, the tax benefit allows, “with this neutralization, that this increased ISP is not reflected in the economy, do not have a knock-on effect to the economy, because it is completely absorbed by this increase in the reduction of business costs. ” According to Lusa, quoting official sources of the Government, the compensation mechanism involves an increase of 20% in fiscal headquarters – for every 100 euros, companies can deduct 120 euros, exclusive benefit for supplies in the country

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the meeting of the presidents of the four confederations with the prime minister, António Costa, with the Finance Minister and the Minister of Labour, Solidarity and Social Security, Vieira da Silva, ended without the presidents of CCP, CIP, CTP and CAP wanted to make a statement to reporters. But already after disclosed the proposed budget, some confederations expressed their reservations about the options of the executive. Also on Tuesday, João Vieira Lopes, president of CTP, expressed concern with the “huge tax burden that will fall on the car industry and transport” of passengers and goods, “which are strategic in terms of export and the overall costs of products. “

Speaking to radio Renaissance, the president of the CCP criticized the retention of the corporate tax rate to 21% and said he feared that the worsening of the stamp duty on consumer credit runs “a motivation of the use of cards” and “an increase in sales in cash” that hinder the “fiscal control” on transactions. Criticism of the OE in 2016 also came from the CAP. Speaking to Lusa, the president, John Machado, considered “unacceptable” the rise of 6% VAT to 23% in various agricultural services and said that there is a tax increase that will penalize the Portuguese economy.

a perception that the finance minister tried to undo this Tuesday at the meeting, which had been requested by employers two weeks ago. “The budget is a balanced budget, responsible, that the deficit reduction is made much at the expense of rigor in public spending, always with this idea in mind: household incomes of recovery and encouraging investment,” said Centeno, the meeting output.