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IRS ‘surcharge’ to disappear altogether in 2017, says PM

Attempting to drum up new business deals in China today, Portugal’s PM António Costa is being kept on his toes by questions ‘closer to home’.

Reporters want to know whether taxes will increase in the 2017 budget – due to be finalised on Thursday – and on this point, Costa has been adamant.

Coming up with a new ‘buzzword’, he has revealed that the much-maligned IRS surcharge is to be phased out completely next year.

Taxes for families in general have reduced, he stressed, and will continue to be so.

But as a result there has to be a “redistribution”. Along the lines of ‘robbing Peter to pay Paul’, Costa has explained this new political mantra saying, “redistribution means paying less in some (taxes), more in others but always paying less across the board”.

“Most families did not pay the IRS surcharge in 2016”, he said. “And in 2017, the surcharge will disappear totally for Portuguese families”.

Pressed on a date for this total disappearance, he was noncommittal, leaving media outlets to suggest the surcharge could be phased out gradually.

natasha.donn@algarveresident.com