Portuguese people pay too much taxes, says the president of the Accountants' Association.

Interviewed by Renascença, Paula Franco asks the next Government for a tax relief, especially for companies, and more support for young people. The president of the Certified Accountants Association advocates for the recovery of Golden Visas, but not for the inheritance tax, and criticizes the excessive weight of green taxation. She also disapproves of public services and says that the Recovery and Resilience Plan (RRP) still hasn't reached companies.

"In Portugal, we are taxed too much," says Paula Franco, president of the Certified Accountants Association, in an interview with the Renascença program Dúvidas Públicas.

The tax burden is at historic highs. It closed 2022 at 36.4% of GDP, is expected to reach 37.2% in 2023, and this year it is projected to exceed 38%, according to the latest State Budget by Fernando Medina. With the increase in revenue collected, even these figures may already be in the past.

Part of this rise is explained by economic growth, because more wealth implies more income to tax. However, Portugal is also one of the countries with the highest taxes, and the president cites housing as an example, subject to permanent taxation.

There are still sectors that have been "forgotten," to the detriment of other priorities. This is the case of companies, which according to Paula Franco, need a clear signal of tax reduction from the next Government. In this sense, she considers the measures presented by the major parties, PS and AD, as positive, and even believes that it will be possible to reach 2028 with Portugal growing by 3.4%, as indicated by the coalition PSD/CDS/PPM. More difficult will be to make the Recovery and Resilience Plan (RRP) reach companies, which still don't feel the "bazooka."

Without reservations, the president is also in favor of a tax-free salary, suggested by AD, and recalls that it is a measure very similar to another already introduced by the PS this year. She supports the return of Golden Visas, even though they remove housing from the market.

She also advocates for tax incentives for young people, which in the case of the PS can be extended, but warns that, by themselves, they will not be enough to retain talent in the country. She doesn't agree with the criticism of 100% financing of housing loans for young people, nor does she see any risk for the State there.

Regarding current taxation, Paula Franco criticizes the excessive weight of green taxation, which in Portugal serves first to collect revenue and only then to change behaviors. She does not believe that the legislative elections are delaying the introduction of VAT on lightweight plastic bags, noting that it is not an easy measure to implement and warns that, for this reason, it will end up becoming "a cost" for the consumer.

The president of the Certified Accountants Association also criticizes the Tax Authority, with whom the OCC has successive disputes. She points out that it must be irreproachable and demands that it comply with the law. She also gives a negative assessment to public services, where the entrenched small power persists.