PS election manifesto promises IVA reprieve for Portugal’s struggling restaurants

In a hard-hitting announcement on Tuesday, Portugal’s PS Socialist party has revealed its election ‘manifesto’ – promising a “complete break” with austerity and multiple measures designed to promote economic growth.

Among the long list of proposals comes the pledge to cut back on the PSD-CDS “77% increase” levied on IVA payable by restaurants.

If the Socialists win the upcoming elections, they promise to return restaurants’ IVA duty to the 13% it was before the coalition government took over.

It is a promise that will warm the hearts of thousands. Hoteliers’ association AHRESP has been campaigning against the IVA increase since it was introduced in 2011 – claiming the 77% increase from 13% to 23% was an “injustice” that jettisoned thousands of businesses into bankruptcy and left thousands more people without work.

“If there were any doubts, they disappeared yesterday,” Diário de Notícias wrote on Wednesday morning, referring to the contention that a future government might see PSD powermakers team up with the Socialists under António Costa.
“It is impossible to see António Costa and Pedro Passos Coelho in the same government.”

Costa’s programme – drawn up by a team of economists – is based on kicking austerity well into the long grass while sticking with Europe, says DN.

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