madeira.news
Economy · Funchal · 29 September 2026

Santana Approves 2027 'Derrama' Tax Amidst PSD Division

The Municipal Assembly of Santana approved the application of the 'Derrama' tax in 2027, a new levy on companies, with internal divisions within the PSD party.

Santana Approves 2027 'Derrama' Tax Amidst PSD Division

The Municipal Assembly of Santana has approved, by majority, the application of the 'Derrama' tax in 2027. This new municipal revenue, levied on companies within the council, is expected to generate approximately 116,000 euros.

The proposal, put forward by the CDS-PP, received favorable votes from its elected members and one municipal deputy from the PSD. The remaining six PSD members abstained. This vote contrasts with the position taken in the council meeting, where PSD councillors had voted in favor of the same proposal.

A PSD deputy questioned the application of the maximum tax rate, suggesting a gradual approach to lessen the impact on businesses. Mayor Dinarte Fernandes justified the measure by the need to strengthen municipal finances to support families, parish councils, schools, and associations, highlighting a family support program expected to mobilize 300,000 euros.

Fernandes also recalled the support provided to businesses during the pandemic, amounting to about one million euros. The possibility of reconsidering the 'Derrama' in 2028, should the economic context change, was left open.

More in Economy