The Vila do Bispo Council will reduce the Municipal Property Tax to the minimum rate of 0,30% in 2021, and will waive the IRS percentage to which it is entitled, which will revert to the benefit of the citizens.
These two measures were approved at the Municipal Assembly of Vila do Bispo on Wednesday and are part of the fiscal package that will be applied in this municipality next year.
Regarding the reduction in the IMI rate, «this will go from the current 0,34% to 0,30%, which represents a reduction in municipal revenues of around 254 thousand euros, compared to the current year», according to the municipality.
In addition to this reduction, the municipality will apply the family tax, which allows the amounts paid by households to be lowered, depending on the number of dependents.
Thus, those who have a dependent dependent will have a reduction of 20 euros, those who have two dependent dependents will have a reduction of 40 and those who have three or more dependent dependents will have a reduction of 70 euros, «this discount is deducted from automatic form in the IMI, for families flagged through the IRS declaration of the previous year, with tax domicile in a building intended for their own and permanent housing in the Municipality».
Another of the tax benefits provided by the municipality to citizens, with tax residence in the municipality, is related to «the full refund of 5% of the IRS, in relation to the income of the previous year, calculated on the respective net collection».
«According to the financial regime of the local authorities, the Chamber is entitled, each year, to a variable participation of up to 5% in the IRS tax, the Municipality of Vila do Bispo deciding to abdicate it in favor of the municipality's families. This decision implies a fall in municipal revenue in an approximate amount of 250 thousand euros. The measure applies to income from 2021 and will have effects on the municipal revenue for the year 2022», explained the Vila do Bispo Council.
With regard to the Surcharge, whose rate is levied on taxable income subject to and not exempt from corporate income tax, the amount approved by the municipality remains at 1% (the maximum limit for this rate is 1,5%).
Adelino Soares, mayor of Vila do Bispo, assured that, «despite this reduction in revenue, all the conditions are still in place for the management of the next mandates to be solid and sustainable, given that the current economic situation and the municipality's financial position is considerably better compared to previous years'.
The tax reduction that will be implemented ««is the result of a rigorous management implemented over the last few years that allows, exceptionally, that the tax burden on families and the local business fabric is alleviated».
"The year 2020 is the culmination of the strategy implemented in this mandate (2017/2021), where we proposed to reduce the total debt in the short term, with clear benefits for the local community, and plan the municipality's future with new investments", said Adelino Soares.
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