The Government met this Monday afternoon at an Extraordinary Council of Ministers to approve a family income support package aimed at responding to the current context of inflation and rising cost of living.
The meeting began at 15:00, after António Costa stated that “it is necessary to ensure that both families and companies can cope with this situation”, stressing that for companies, only after the Council of Energy Ministers of the European Union is scheduled for 9th, so it will make sense to take action.
The President of the Republic, Marcelo Rebelo de Sousa, said this weekend that the package of measures that the government will present must be urgent, flexible and aimed at the most needy, as well as the middle class.
Family Income Support Package:
Pensions will rise in January from 4.43% to 3.53%.
Pensioners in January will receive an increase of 4.43% to 3.53%, depending on the size of their pension. António Costa specified that the proposal that the government will send to the Assembly of the Republic provides that pensions up to 886 euros will increase by 4.43%; those whose value ranges from 886 to 2659 euros will increase by 4.07%, while others (which are subject to renewal taking into account the current legal formula) will increase by 3.53%. This measure is added to the half-board equivalent supplement that will be paid in October to pensioners.
Government to freeze travel and ticket prices for public transport in KP in 2023
The government has determined a price freeze on travel and public transport tickets at the checkpoint in 2023.
Non-pensioners with an income of up to 2,700 euros will receive a subsidy of 125 euros
Every non-pensioner with a monthly income of up to 2,700 euros will receive an extraordinary payment of 125 euros in October with a subsidy of 50 euros per dependent for all families.
Government reduces VAT on electricity from 13% to 6%
The government has announced a reduction in the VAT rate on electricity from 13% to 6%, with the goal of coming into force by 1 October. The reduction in the VAT rate is a measure demanded by most opposition parties and follows the example of other countries in the European Union by taking advantage of the opening of Brussels, which since April allows member states to apply a reduced VAT rate without having to consult the VAT committee.
Rents can only rise by 2%
The government will create a “brake” for rent growth in 2023, limiting growth to 2% and preventing it from rising in line with inflation. This rent cap will be accompanied by a tax component to mitigate the impact of this measure on landlords.
Landlords will receive an IRS or IRC reduction to compensate for the brake on rent.
Landlords will be compensated through the IRS or IRC for the difference in rent resulting from the “slow” increase and the renewal that occurs as a result of the application of the legal formula. “The draft law that we have submitted to the Assembly of the Republic provides that compensation will be refunded to the IRS or IRC, depending on the nature [dos rendimentos] landlord, what is the difference between what is limited to a rent of 2% and what follows from the legal formula,” the prime minister said.
Extending until the end of the year the suspension of carbon tax increases, the return of additional VAT revenues to citizens and the reduction of CIT
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Updated September 5, 2022 | 23:03
The total cost of the government’s plan is 2.4 billion euros.
The support package for families, approved by an extraordinary council of ministers this Monday to mitigate the impact of rising costs of living on incomes, has a global value of 2,400 million euros.
The total cost of the plan was announced on Monday by Prime Minister António Costa at a press conference following a meeting of the Council of Ministers in Lisbon.
The Prime Minister indicated that 2,400 million euros are added to the 1,600 million euros of support mobilized up to September, bringing the total value of support pledged to respond to the crisis this year to 4,082 million euros.
Rents can only rise by 2%
The government will create a “brake” for rent growth in 2023, limiting growth to 2% and preventing it from rising in line with inflation.
The measure was announced today by the Prime Minister and is part of a support package for families approved today by an extraordinary Council of Ministers to mitigate the impact of rising cost of living on income.
This rent cap will be accompanied by a tax component to mitigate the impact of this measure on landlords.
Government reduces VAT on electricity from 13% to 6%
The government announced today that it will cut the VAT rate on electricity from 13% to 6% with a view to taking effect by 1 October.
Government freezes prices for CP passes and tickets
The government froze prices for CP passes and tickets
The government allocates an additional 125 euros to each citizen up to 2,700 euros per month
In October, the government decided to allocate an additional 125 euros to each citizen up to 2,700 euros per month in a lump sum. An amount of 50 euros will also be credited for each child.
Additional half board for pensioners paid once in October
Pensioners will receive an additional allowance equivalent to half of the monthly pension paid immediately in October, the Prime Minister said today.
Costa says the government has already closed the social support package
The prime minister told reporters on Monday that the extraordinary council of ministers, which is being held from 3 pm at the Palacio Nacional da Ajuda, has already closed the social support package to fight inflation.
Costa presents the measures to the President of the Republic ahead of a press conference
The Prime Minister will present the social support measures approved by the extraordinary Council of Ministers to the President of the Republic this Monday by visiting the Palacio de Belen before announcing them at a press conference.
Author: morning Post
Source: CM Jornal
