Victory for opposition, but it is also “not that simple”
President Marcelo has today given ‘the green light’ to seven diplomas – five of which were pushed through by opposition parties against the AD government.
In one sense, the promulgation is a victory for the opposition. But in another, it is a way of Marcelo saying “square this with the State Budget”.
As a note on the president’s official website this afternoon explains, all these diplomas “have a financial dimension with an impact on state revenue” – and the increase in expenditure will have to be found within the next State Budget (the moment in October considered one of the ‘big challenges’ for Luís Montenegro’s minority government).
“In other words, all the legislation will have to be covered by the 2025 State Budget in order to be implemented, and is therefore not irrelevant to contributing to the debate and approval of next year’s Budget. This also contributes to the financial, economic and political stability of our country”, says the president’s text.
As commentators have suggested, this is a way of Marcelo putting warring political parties on the spot: they will have to ‘agree’ the State Budget and move on with this government, or the various diplomas will fall.
The seven diplomas are listed on the official site of the presidency as:
– the decree increasing electricity consumption subject to the reduced rate, amending the Value Added Tax Code.
– the decree eliminating tolls on inland freeways and on roads where there are no alternatives that allow safe and high-quality use, repealing Decree-Law no. 97/2023 of October 17.
– the decree increasing the deduction for housing expenses, amending the Personal Income Tax Code.
– the decree authorizing the government to revoke the extraordinary contribution on local accommodation properties, as well as setting the coefficient of ageing applicable to local accommodation establishments for the purposes of assessing municipal property tax and eliminating tax obstacles to geographical mobility for employment reasons.
– the decree that alters the Personal Income Tax Code.
– the decree updating the value of specific deductions for Personal Income Tax.
– the decree that proceeds to the altering of the Personal Income Tax Code.
Also among ‘green lights’ signed off by the president today was the diploma waiving IMT (municipal tax) and Stamp Duty payments for young people, under the age of 35, buying their first home, as well as the diploma recovering the remaining six years, six months and 23 days, that were ‘frozen’ from teachers’ careers during the troika years.
