Government could increase tax brackets
The Portuguese Government is looking at increasing the number of tax scales by splitting tax brackets. If it does so, Portugal will have a record number of tax brackets.
In turn, it would also mean that Portugal would have a record number of taxes. The move is to offset the tax losses caused by the pandemic in 2020 and 2021.
The warning, which could also mean an increase in indirect taxes, was made by the prime minister in an interview with TV channel TVI.
António Costa said that the changes would specifically target the third and sixth tax brackets.
“We already made a first increase in the tax bracket and scheduled a second for this year, but we had to postpone it because of the crisis. We are now looking at this very seriously to identify the possibility of including a further increase in tax scales to be included in the next State Budget,” said Costa adding that in terms of taxes, Portugal “does not compare unfavourably” with other European countries.
The third bracket covers income between €10,732 and €20,322 and the sixth covers €36,967 to €80,882. Helena Borges (pictured) is the current Director-General of Taxes in Portugal.