A reduction in corporate tax for companies is an important signal for the entire industry and is beneficial in view of the current crisis, Economy Minister António Costa Silva said on Sunday.
“Today, given the crisis we are facing, I think it is extremely beneficial to make this cut across the board and see from there what impact it could have in the future,” the minister told journalists on the sidelines of a visit at Portuguese companies participating in the MICAM shoe fair in Milan from Monday to Tuesday.
“I hope that in the negotiations on the Income and Competitiveness Agreement and after that in the state budget, we can have this target of lowering the corporate income tax,” he added.
Although the government program includes selective corporate tax cuts aimed at companies that reinvest part of their profits in economic activities, invest in technological innovation or hire skilled young people, Costa Silva said he had always “been unequivocal that the country , somewhere, had to do this blanket corporate tax cut.”
“I haven’t changed my mind,” he assured, explaining that “after the discussion and within the framework of the government program,” “the number of selective reductions” was registered.
The corporation tax rate is 21% on company profits up to €1.5 million. A state surcharge and a municipal surcharge are added to this rate for companies with higher profits.
(Patricia Dinis/Lusa.pt)
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