en 
This position was conveyed by Fernando Medina after delivering the Government's State Budget proposal for 2024 to the President of the Assembly of the Republic, Augusto Santos Silva.
According to the head of Finance, next year's Budget aims above all to “respond to the needs of the Portuguese, having three pillars: increasing income, public and private investment, and protecting the future”.
In terms of increasing income, Fernando Medina said that the current situation of inflation and the needs of families “require” a policy in this sense, “whether through salary increases, or through a significant reduction in the IRS, or the reinforcement of support more significant social issues”.
The State Budget proposal for 2024 is generally debated on the 30th and 31st in the Assembly of the Republic, with a final global vote scheduled for November 29th.
Related article: Income tax reduction
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The Portuguese tax system is both too complex and punitive
If you want to transform the country, the economy and bring in massive foreign investment into industry do the following
Personal income tax threshold starts at 15,000.Under that no tax is payable.
That will immediately enrich the lives of millions of ordinary Portuguese people.
Simplify the tax code with a maximum tax rate of 40%.
That will incentivise people to want to work and keep more of what they earn
Abolish capital gains tax on principal residences.That will enable older to people to downsize and help their offspring to be able to get on the property ladder.
It will make the housing market much more liquid,instead of people clinging on to homes too big for them for fear of massive tax bills.
Create green industry and tech tax free zones that will encourage inward investment and provide decent well paid jobs for the population.
History has proven time and time again that high taxes simply stifle investment,encourage people to find ways to avoid paying them altogether and disincentivise work and investment.
When will socialists learn the lesson?
By James from Algarve on 11 Oct 2023, 08:04
@James, they'll never learn. Socialists want to intervene in absolutely every aspect of your life, controlling this, taxing that, subsidising this, that and the other. It all costs money, hence the punitively high tax rates. However, they haven't heard of the Laffer curve, where there is a pivotal tax rate above which tax revenues fall as disincentives kick in. No-one is going to pay tax rates of 70%, for example. That doesn't stop Socialists setting tax rates above these pivotal rates, which brings in less, not more, tax revenue. Costa's government is subsidising people's petrol, rent, energy bills and a host of others. Ludicrous not to expect people to take responsibility for their lives.
By Billy Bissett from Porto on 11 Oct 2023, 12:14
I echo every word with James. Socialists have very little vision and socialism has never ever worked....anywhere.
By Leslie Needham from Beiras on 11 Oct 2023, 13:46
Do you really think a 40% tax is attractive to the affluent?
Ending of NHR will keep a lot of affluent from emigrating here.
At a 40% rate plus VAT and other taxes, that makes the govt a 50percent partner in your earnings.
This will not bring wealth to the country.
By jeffk from Algarve on 11 Oct 2023, 18:19
Unfortunately James, before any of your common sense suggestions happen, pigs will fly!
By Greg from Other on 12 Oct 2023, 08:30
I never understood people that immigrate and complain about their new country.
I dont pat a dime of taxes under 13500 and it will be 15000 in two years.
Its good to cancel nhr, and if socialism is not good for you , so go to the us where you die outside the hospital if you are poor
By Ivan from Lisbon on 12 Oct 2023, 19:19