By Posted 9 Outubro, 2024 In Competitiveness, IRC, News, Tax
Portuguese former celebrity banker, Sir António Horta-Osório says that the government should slash corporation tax for companies to help them become more competitive.
António Horta Osório states that, in a scenario of balanced accounts and budget surplus, the Government should focus on improving the quality of life of the Portuguese. A step that must be done through a reduction in taxes levied on companies, namely IRC and the Single Social Tax (TSU), opening the door to an increase in wages.
“Now that we have finally got our accounts under control we have another challenge – our salaries”, he said at a conference organised on Wednesday by Jornal Económico on topics such as artificial intelligence and housing, tourism, the State Budget and the challenges facing the Portuguese-speaking world.
According to António Horta Osório, “Portuguese society must require the Government to use the budget surplus in the best way to increase the productivity and quality of life of the Portuguese by lowering, for example, the IRC” charged to companies, which are the ones “who produce wealth” in Portugal.
“Lowering the IRC or TSU can increase the competitiveness of companies, they can innovate more, hire more people and increase wages. This can lead to a more significant increase in the quality of life of the Portuguese,” he said.
In a comparison between 2007 and 2023, the former banker concludes that Portugal has managed to improve salaries. However, in other countries, such as Spain, salaries are 30% higher or, in the case of Europe, almost double.