IRS reduction in 2025 approved in general terms by Parliament

The Government's proposal to reduce IRS rates this year by 500 million euros was approved this Friday in Parliament with votes in favor from PSD, CDS-PP, Chega, IL, PAN and JPP, and abstention from PS.

BE, Livre and PCP voted against.

The initiative that provides for a reduction in rates from the first to the eighth bracket will now be discussed in detail.

According to the proposal, the rate for the first bracket will increase from 13% to 12.5%, for the second bracket will decrease from 16.5% to 16%, for the third bracket will decrease from 22% to 21.5%, for the fourth bracket will decrease from 25% to 24.4%, for the fifth bracket will decrease from the current 32% to 31.4%, for the sixth bracket will no longer be 35.5% and will be 34.9%, for the seventh bracket will increase from 43.5% to 43.1% and, finally, for the eighth bracket will decrease from 45% to 44.6%. The rate for the last income bracket will remain at 48%.