Tax services face the axe

Half of Portugal’s tax offices (Finanças) are expected to close down, according to a former Social Democrat leader who was tipped off by a government official.

Marques Mendes, who was speaking on SIC television during his weekly commentary, said that the Troika had initially imposed a 40% reduction in the number of tax offices. However, following recent reviews of the bailout agreement and a more pressing need to cut back on public expenditure, the government had been told to close down 50% of its Finanças offices.

As the Algarve Resident had reported last month, the Union of Taxation Employees expressed concern that 150 Finanças offices (around 50%) would close down after the local elections (September 29), particularly in the hinterland regions of the country.

Paulo Ralha, the president of the union which represents 12,500 workers, said his concerns were based on a recent document from the tax authority (Autoridade Tributária e Aduaneira) which featured the number of Finanças’ employees that each local office needed to operate efficiently and cost-effectively. Paulo Ralha said he believed several offices could be closing as soon as this month.

Marques Mendes confirmed that the announcement will soon be made by the government, which had decided to wait until after the municipal elections to prevent the opposition from using it as political propaganda.

Last month, the Socialist Mayor of Aljezur, José Amarelinho, who has recently been re-elected, said that a government official had confirmed, during a meeting of the Algarve’s tax services, that the government was preparing to close tax offices in Alcoutim, Castro Marim, São Brás de Alportel, Monchique, Aljezur and Vila do Bispo.

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