In the debate on general policy in parliament, the social-democratic parliamentary leader, Joaquim Miranda Sarmento, said that last year VAT revenue rose 18%, with the prime minister replying that it was returned in more than twice the amount in support for families and businesses.
“You know who else gains from rising prices? It is your Government”, criticized Miranda Sarmento, also accusing the Government of having devalued the increase in inflation for months, saying that this was only transitory.
The social democrat left a triple challenge to the prime minister, in terms of inflation.
“Do as the French Government does and reach an agreement with distribution on regulation and price formation; second, create financial support for the most vulnerable workers and pensioners; third, lower the IRS in the fourth, fifth and sixth echelons in order to relieve the middle class,” he appealed.
In response, António Costa denied that his Government had devalued inflation, pointing to measures in areas such as fertilizers, feed, energy and the extraordinary direct support granted last year.
“At the moment, we are working on a triple dimension: an agreement with distribution and production, the fiscal dimension and, finally, direct support to needy families to face the increase in the cost of living”, replied Costa.
The Prime Minister estimated that, in 2022, the Government had charged around €2 billion more in VAT, having redistributed €5,700 million in support, "more than double the expected revenue".
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