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Government pays out 2.3 billion euros in tax refunds for 2015

Government changes to the calculations of IRS (income tax) returns have seen the State paying out 2.3 billion in rebates for 2015. It is great news for taxpayers, but not helping State coffers, explains the nation’s media. Nonetheless prime minister António Costa has pronounced himself “tranquil” with the data, stressing that Portugal is on track to “comfortably” meet this year’s deficit targets.

Nonetheless, tax income for August, for example, is considered to have “stagnated” – not bringing in “a cêntimo more than in the same month in 2014”, reports national tabloid Correio da Manhã.

The paper explains that finance chiefs are hoping that income from IVA and IRC (business tax) will exceed that which poured in last year, and thus reflect growth, albeit slow, in the nation’s economy.

Meantime, CM stresses that payments due by public entities are piling up. I

n August, 1.157 billions euros was owing, 17 million more than in July and 60 million more than in August 2015.

natasha.donn@algarveresident.com