PSD/M deputies in the Assembly of the Republic met with the PSD/M Parliamentary Group in the Regional Legislative Assembly to discuss the recent approval of an IRS reduction by the national parliament. This measure, affecting tax brackets one through six with decreases of 0.3 to 0.5 percentage points, aims to boost the disposable income of families in Madeira and Porto Santo.
Pedro Coelho, spokesperson for the meeting, noted that the Regional Government has aligned with this national decrease, maintaining a maximum 30% fiscal differential across all nine IRS brackets compared to national rates. The Regional Government's decision, approved by the Council of Government, will be submitted for review by the ALRAM. This tax burden reduction policy aims to ensure lower taxes and greater financial capacity for families.
The measure will cost the Region's budget €5.6 million and is retroactive to January 1, 2026. Withholding tax in November or December will see a 50% exemption, allowing affected workers and pensioners to receive more net income without waiting for the annual IRS settlement. Pedro Coelho emphasized that the priority is the money left in citizens' pockets.
