Portuguese government presents its anti-inflation plant

Last night, in a televised address, the Portuguese government, through the intermediary of Prime Minister Antonio Costa, presented its anti-inflation plan to tackle rising gas and electricity prices. These measures will undoubtedly help the vast majority of the population to cope with soaring prices. 

Portuguese government presents its anti-inflation plant

As highlighted by the Portuguese government last night, the support packageThese measures, aimed at mitigating the effects of inflation and rising energy costs, will total 2.4 billion euros. For the record, the measures concern the following areas: income, children and young people, pensioners, electricity, gas and fuel, rents and transport.

What kind of support is given:

• Reduction of VAT on the supply of electricity from the current 13 % to 6 %, a measure in force until December 2023;
• Extension until the end of the year of the suspension of the increase in the carbon tax, the return to citizens of additional VAT revenues and the reduction in the PSI.
• Allocation of an extraordinary payment of 125 euros to every citizen who does not receive a pension and whose income does not exceed 2,700 euros per month;
• All families, regardless of income, receive an extraordinary payment of 50 euros for each dependent child up to the age of 24;
• Payment to pensioners of 14 and a half months of pension, instead of the usual 14 months, with the additional half-board paid in October;
• Pension increases in 2023 of 4.43 % for pensions up to 886 euros, 4.07 % for pensions between 886 and 2,659 euros, and 3.53 % for other pensions subject to discounting;
• Price freeze on public transport season tickets and CP tickets for the whole of 2023;
• Maximum discounting of residential and commercial rents limited to 2 % in 2023;
• Creation of extraordinary support for renting, by granting a tax advantage to owners on property income in terms of IRS or IRC.

The eight measures were approved at a Council of Ministers The measures were presented by the Prime Minister, António Costa, in Lisbon on the same night. The promulgation of the diploma by the President of the Republic came as the Prime Minister was still completing the presentation of these measures at his press conference at the National Palace in Ajuda.