The Government has already launched the so-called “anti-inflation plan” for mitigate the effects of the general rise in prices and consequent loss of income for the Portuguese. After an extraordinary council of ministers, Prime Minister António Costa announced a set of eight measures to support household income and to help them face the rising cost of living, initiated by the Covid-19 pandemic and accelerated by the war between Russia and Ukraine. from January of the next year. Know the Government’s plan, evaluated in 2.4 billion eurosand what impact it will have on your budget:All non-pensioned citizens with a income up to 2,700 euros per month will receive a extraordinary payment of 125 euros. The payment of this support will be made automatically, in October, through Finance or Social Security. According to the Prime Minister, the measure applies to “all those who are taxpayers in the IRS, to those who, according to their incomes are exempt from paying IRS or from submitting an IRS declaration, and to all those who are beneficiaries of social benefits, such as unemployment benefit, Social Integration Receipt (RSI), social benefit for inclusion or subsidy for informal caregivers”. Costa stressed that this measure will not be paid by Social Security, but by State Budget revenues. Also read: Why should I take inflation into account in my emergency fund?
Support of 50 euros for each child/young person
Families will also receive a extraordinary support of 50 euros for each descendant – child or young person up to 24 years old – who are in charge, regardless of your income“For example, a couple with two dependent children who both have an individual income of up to 2,700 euros per month will receive, in October, an extraordinary payment of 350 euros”, summarized António Costa.
Half board supplement in October
Pensioners will receive a extraordinary supplement equivalent to 50% of the usual value of the pension – that is, more half board – already in October. This one amount will be taxed at the IRS, but the increase in income will not translate into an increase in tax payable or withheld. On the other hand, the Government decided to suspend, in 2023, the rules for regularly updating pensions, which would guarantee increases between 7.1% and 8%, and limit the rise to 4.43%.Thus, the Government will propose to the Assembly of the Republic the following increases for the next year:- 4.43% for pensions up to 886 euros- 4.07% for pensions between 886 and 2659 euros- 3.53% for other pensions subject to update“These increases, added to the extraordinary supplement that will be paid in October, guarantee that all pensioners will have, by the end of 2023, an income identical to that which would result from the strict application of the legal formula. Pensioners will thus see the purchasing power lost throughout this year fully restored”, said António Costa. The Prime Minister explained that the brake on updating pensions it is a way of guaranteeing “the right balance between the protection of the purchasing power of pensioners and the lasting sustainability of Social Security”. Also read: How inflation threw the markets into one of the worst semesters ever
Electricity VAT decrease from 13% to 6%
Electricity VAT must drop from 13% to 6% next month. The Government will request that this proposal be scheduled and discussed in the Assembly of the Republic as a matter of urgency so that it can be enter into force until the 1st of October.The tax reduction to 6% will be applied to the first 100 kWh consumed each month – or 150 kWh monthly, in the case of large families -, provided that the contracted power does not exceed 6.9 kVA. The measure, which will cost 90 million euros a year, will cover 85% of consumers.
At least 10% discount on gas bill
the consumers will be able to return to the regulated natural gas market, gaining access to a lower tariff and avoiding the increases announced by the main suppliers in the liberalized market. In the regulated market, prices will also rise in October, but the increase was limited by ERSE to 3.9%. According to the prime minister, “even without taking into account the increases already announced in the free market, an aggregate of a couple with two children will see the invoice price decrease 10% moving from the free to the regulated market.” Consumers wishing to move from the liberalized market to the regulated market may do so as soon as the diploma is published in the Diário da República. The change is free of charge and does not require a new gas inspection. Last resort gas suppliers are obliged to make available on their portals the possibility of online adhesion to the regulated tariff, within a maximum period of 45 days after publication of the diploma.
Still in the energy chapter, the government also decided to extend, until the end of the year, the validity of the following measures:- Suspension of the increase in the carbon tax- Return to citizens of additional VAT revenue- Reduction of the tax on petroleum products. pay 16 euros less for diesel or 14 euros less for gasoline than they would pay if these measures were not renewed. Read more: What is the best way to save on electricity?
Increase in rents limited to 2%
The increase in the value of housing and commercial rents will be limited next year to 2%, below the forecast rise of 5%. As the Chief Executive indicated, this measure arises in response to the need “not to feed an inflationary spiral in which we quickly lose tomorrow what we gain today”. set for the Eurozone: stabilize at an inflation rate close to 2%. This should therefore be the reference value for updating benefits, prices, tariffs or rents set by the State for the next year in order to prevent a year of exceptional and atypical inflation such as 2022 from consolidating with permanent effects. .This measure will be compensated through the reduction of IRS and IRC of landlords.
Frozen public transport passes and CP
CP city passes and tickets will not be increased next year. The government decided freeze increases and maintain prices, without any ascent. Transport companies will be compensated for this freeze. Tags #support, #fuel, #electricity, #energy, #gas, #pensions, #rents