Almeirim, Santarém, Portugal, June 27, 2025 (Lusa) - The Portuguese minister of the economy said on Friday that the reduction in personal income tax proposed by the government could go ahead this year, considering that any parliamentary opposition to the measure “won’t be well received by the Portuguese”.
“It would be very strange to see parties fighting over a reduction in taxes on the earnings of workers,” said Manuel Castro Almeida, on the sidelines of the inauguration ceremony for Mercadona’s new logistics block in Almeirim, in the district of Santarém.
“The Portuguese would be immeasurably surprised by a reaction like that,” added the Minister of the Economy and Territorial Cohesion, stressing that the Government’s objective is to put more disposable income in the hands of workers in order to stimulate consumption.
“If there is a tax cut, there will be more money available in the pockets for workers to do what they want with it and consume more,” he said.
The minister also argued that the measure should be implemented “as soon as possible”.
“If there is going to be a tax cut, let it be as soon as possible. The sooner, the better. The idea is that it should be this year,” he said.
The bill was submitted to parliament on Wednesday and provides for an additional reduction in personal income tax of €500 million this year of 0.5 percentage points between the first–third brackets, 0.6 percentage points between the fourth–sixth and 0.4 percentage points in the seventh–eighth.
Meanwhile, parliament on Friday approved the government’s request for urgent consideration of the draft bill on personal income tax, with only the PCP abstaining.
During the inauguration ceremony for Mercadona’s new logistics block, the minister highlighted the importance of foreign investment in the region and its positive impact on the creation of well-paid jobs.
"It's an investment that bets on Portugal, with innovation, increased competitiveness and productivity. This is essential for increasing wages," he emphasised.
Castro Almeida also emphasised that wages at Mercadona are "substantially higher than the national minimum wage", which he considered to be a "very positive factor".
Pointing to profit as the driving force behind investment and economic growth, the minister also argued that Portugal should create the conditions for "more investment and reinvestment" and considered that a competitive economic system could make it possible to pay wages "on a par with what is paid abroad".
The Minister for Territorial Cohesion also reiterated the government's commitment to reducing bureaucracy and advocated legislative changes to speed up administrative processes.
"We want a war on bureaucracy. When the law gets in the way, the solution is to change it," he said, adding that the government is preparing changes to the industrial licensing regime.
JYRE/AYLS // AYLS
Lusa
