Livre and PAN also criticized the decision to give up public revenue, benefiting especially families with higher incomes, arguing that this amount should be directed to investing in the city, from housing to public transport.
The PS justified the abstention from the full refund of the IRS as it considered that “a decision with this financial scope required greater consideration, impact assessment and articulation with a clear municipal investment strategy”remembering that when the PS governed the capital, between 2008 and 2021, it opted for “a balanced solution, with a 2.5% stake”, to make fiscal devolution compatible with financial sustainability.
In favor of the chamber’s fiscal policy, presided over by Carlos Moedas (PSD), deputies from CDS-PP and IL, parties that support the Social Democrat government, praised the option of tax refunds.
Hoping that the measure will be maintained throughout the entire term (2025-2029), IL said that “Lisbon demonstrates that it trusts families and companies more than the weight of the municipal machine”.
In relation to the Municipal Property Tax (IMI) rate of 0.3% for urban buildings, which is the minimum allowed by law, the chamber’s proposal was made possible by the assembly with BE’s votes against, PAN’s abstention and votes in favor of the rest.
The IMI proposal includes increases and reductions, namely a 30% increase for degraded urban buildings with works ordered by the municipality that have not yet been completed, as well as the so-called family IMI, with a reduction in the rate of 30 euros for families with one dependent, 70 euros in the case of two dependents and 140 euros for households with three or more dependents.
The PCP also suggested “a 25% increase in the IMI rate to be applied to buildings or parts of buildings located in an urban pressure zone, in cases where, intended for housing, the property is not rented for housing or assigned to the taxpayer’s own permanent home”an increase that would be 50% in the case of a legal entity.
However, the proposal was rejected, with PSD, CDS-PP, IL and Chega voting against.
The IMI rate for urban buildings can vary between 0.3% and 0.45%, with municipalities being responsible for setting the value between this range.
With the votes against from Chega, who initially voted in favor, but corrected the vote, and the votes in favor of the rest, a surcharge rate of 1.5% on the taxable profit of companies with a turnover exceeding 150 thousand euros was approved, with the rest exempt.
The assembly also made possible, with the abstention of PEV and Chega, the percentage of 0.25% relative to the municipal fee for rights of way.
In the 2025-2029 mandate, the Lisbon Municipal Assembly, which is made up of a total of 75 deputies, has 10 municipal groups, respectively PS (24), PSD (22), IL (six), Chega (six), PCP (five), CDS-PP (four), Livre (three), BE (two), PEV (two) and PAN (one).