Passos Coelho does not intend to download VAT on the restoration (with video)

The VAT on restoration will not go down in the near future, admitted prime minister Pedro Passos Coelho, in the interview […]

Pedro Passos Coelhonuno costa_3The VAT on restaurants is not going to go down any time soon, admitted prime minister Pedro Passos Coelho, in an interview to assess the legislature, given last Friday, in Lisbon, to the main Portuguese regional newspapers.

In response to a question posed by Sul Informação, Passos Coelho said that, despite the demands of the catering sector, "I don't think" it is possible to lower that tax, currently at 23%.

The prime minister admitted that he even "would like", but this will not be possible, "unless we have unexpected news", to be able to aim, in the next legislature, "for a lower general level of tax burden, namely through VAT".

However, he stressed, "this is not planned, it is not in the conditions that we think it is prudent to anticipate in the next four years."

Passos Coelho said that the "concern" of his government is centered "on the removal of austerity measures that caused a significant decrease in people's income, either through taxes or, as was the case of civil servants, through their salaries. That is our priority».

What the Government intends is, therefore, "to use all the leeway we have to remove these measures that were penalizing for income, either through the gradual removal of the IRS surcharge, which applies to all, or through the gradual replacement of civil service salaries'.

As for the tax conditions for companies, the prime minister explained that "our main objective, and this also includes restoration, is to maintain the tax relief that is planned."

In this regard, and still in response to the Sul Informação, the government leader added: «we removed two percentage points of this tax in 2014, we will remove another two percentage points in 2015 and then the goal is to cut one percentage point by 2018, in order to reach a competitive corporate income tax rate in European terms ».

Pedro Passos Coelhonuno costa_4All of this «to attract more investment, to make Portugal a more attractive destination for investors».

Despite having no intention of lowering the VAT, in his opinion as there are no conditions to do so, the prime minister announced that "the level of activity in catering has been improving, but also the level of employment". In other words, he argued, «not only has there been a recovery of companies in the area of ​​restoration, but we have been seeing an increase in the employment generated by companies in this area».

He admitted, however, that "even removing all these measures that we have, we continue to have a very high tax burden."

«We would need to have a more powerful economy and a public expenditure that is even better proportioned to the availabilities of our taxpayers», concluded Pedro Passos Coelho, in the interview he gave to the main regional newspapers in the country, at his official residence, at the Palácio de S. Bento, in Lisbon.

 

See here PM Passos Coelho's answer in full:

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