Portugal|Portuguese young people may avoid income tax in their first year of work, according to a recent budget proposal.
The summary is made by artificial intelligence and checked by a human.
The Portuguese government is proposing income tax relief for young adults.
Those under the age of 35 and earning no more than 28,000 euros per year would avoid income tax during their first year of employment.
The purpose of the show is to prevent the brain drain of young people abroad.
in Portugal exceptionally hard reliefs for income tax are presented to young adults.
Those under the age of 35 and earning no more than 28,000 euros per year would avoid income tax during their first year of employment. After that, taxation would gradually increase over a decade towards a normal level.
The purpose of the controversial show is to prevent the brain drain of young people, as many go abroad in search of better job prospects.
Presentation the Prime Minister drives the budget Luís Montenegro center-right government.
To report on it British media Guardian according to the Portuguese earn an average of 20,000 euros per year. Income taxation ranges from 13 to 48 percent.
There is not much left for young people, and youth unemployment is high. The country’s unemployment rate was only 6.1 percent at the end of spring, but among young people it was 22 percent.
Housing is also expensive. At the end of September, there were protests in the capital Lisbon due to rising rents.
If implemented, just under 400,000 people would benefit from the tax relief.
Size the thing may collapse as well as the whole government. Montenegro leads a minority government and has to negotiate everything with the left in the opposition.
The parties have another very sensitive matter on their hands, writes news agency AFP. It is a proposal to reduce corporate tax by one percentage point to 20 percent.
New elections are on the horizon if the budget is not created by the end of November. The consideration of the budget in the parliament starts on the last day of October.
“If there is no budget, there will be a political and economic crisis,” warned the president earlier Marcelo Rebelo de Sousa According to AFP.
Portugal has tried one of my other tax carrots before. In the last decade, it attracted the elderly by offering tax-free retirement income. The phenomenon also occurred in Finland hundreds of senior citizens to pack their suitcases.
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