Portugal Travel

February 13, 2009

Tax burden will be lower in 2009, the year in which elections occur three

The government promised the European Commission to raise taxes in 2010 and 2011.

The decomposition of the tax revenue under the Stability and Growth Plan (SGP) adopted at the end of January and has already delivered in Parliament in Brussels, makes clear that the direct and indirect taxes will increase in the next two years, advancing the 'Morning Post.

After the relief applied in 2009, the tax burden will increase 0.3 percentage points over the next two years. And, if the GDP is around 160 billion per year, the Portuguese pay more 320 million euros in taxes in 2010.

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The budgetary outlook for the government until 2011, in JEP, show that direct taxes such as IRS and IRC, down from 9.8 percent of GDP in 2009 to 9.6 percent in 2010, but rise to 9.7 percent of GDP next year, when the government estimates economic growth of 1.3 percent.

Already indirect taxes such as VAT and the ISP will have a contrary trend: in 2010, despite the impact of economic and financial crisis is far from the end, increase to 15 per cent of GDP, against 14.8 percent in 2009 and in the following year, still the same weight in GDP.

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With this increase in taxes, the tax burden, which in 2007 was 36.5 percent of GDP, increased by 35 per cent of GDP in 2009 to 35.2 percent, next year, and 35.3 per cent in 2011. From 2007 to 2011, the tax burden will be lower in 2009, three years in which elections occur.