PS /Faro wanted a “more ambitious” reduction in the tax burden

The tax package was approved on September 23rd at a council meeting and on the 30th at the Municipal Assembly

It's good, but it could be better. The PS/Faro welcomes the recent reduction in the tax burden, but says that the PSD executive could have had a “more ambitious” proposal. 

The tax package, approved on September 23rd at a council meeting and on the 30th at the Municipal Assembly, provides for a reduction in the Municipal Property Tax (IMI) for urban buildings.

After a decrease in 2024 (from 0,35% to 0,32%), the Municipality of Faro lowered this rate again in 2025 to 0,30% – the minimum rate that the Municipality can charge.

In the opinion of the PS/Faro, «in recent years, residents have faced a significant increase in taxes and fees, without any tangible improvements in the quality of life and services provided. Examples of this are the state of urban cleanliness and the lack of investment in essential areas, such as the water supply network».

Regarding IRS, the socialists say that, “in just a decade, revenue has more than doubled, going from 2,85 million euros in 2014 to almost 6 million in 2024”.

As regards "IMT, the Municipality collected almost four times more, from 4 million in 2014 to almost 15 million in 2023. The municipal tax rate paid by companies based in Faro rose from 1,3 million euros in 2014 to around 4 million euros currently", says the PS.

According to the local authority, the “tax package now approved for 2025 will also benefit companies in the municipality of Faro, with a new reduction in the rate of municipal tax: in addition to the exemption from this tax for companies with a turnover of up to 150 thousand euros, already in force, the normal rate of municipal tax will again be reduced from 1,35% to 1,20% on taxable profit subject to and not exempt from IRC (Corporate Income Tax). This rate, it should be noted, fell from 1,50% in 2023 to 1,35% in 2024».

«The variable participation rate in the formation of the IRS received from the municipality is also reduced from 5% to 4,5%, while the rate of rights of passage for goods in the municipal public and private domain – by companies that offer publicly accessible communications networks and services and infrastructures for hosting these communications – is once again set at 0,25%», argues the executive led by Rogério Bacalhau.

For the PS, the defended “significant increase in tax revenue demonstrates that the Municipality, under the leadership of the right-wing executive, could have adopted more generous policies to benefit families and local businesses”.

«In addition, the Municipal Executive has rejected several proposals from the PS, presenting them as its own the following year. This happened with the exemption from Derrama for companies with a turnover of less than 150 thousand euros, the reduction of IMI and the reduction of the IRS Participation Rate on which, in 2024, citizens could have paid 1,2 million euros less», conclude the socialists.

 

 

 



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