Economy
Tax burden remains at 35% in 2027 thanks to increased employment and wages
The government projects that Portugal's tax burden will remain stable at 35% of GDP in 2027. This stability is expected because growth in social security contributions, driven by higher employment levels and wage increases, will offset the revenue losses from planned IRS tax cuts.
Why it mattersWhile this is a macro-economic forecast, it suggests that tax relief on personal income (IRS) is being balanced by sustained social security contributions from workers and companies, indicating no significant shift in the overall tax pressure on the economy in 2027.
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