The President of the Government announced today a tax reduction that will cover nearly 90 percent of Azorean families and, simultaneously, safeguard the Region's capacity to use Community funds, taking into consideration the importance of public investment in the maintenance and creation of jobs.

With regard to Personal Income Tax, the tax reduction proposal to be presented by the Regional Government at the Legislative Assembly provides a reduction of 30 percent in the first bracket, 25 percent in the second bracket and 20 percent for the other brackets.

Speaking to journalists at the end of an audience with the leader of CDS/PP in the Azores, Artur Lima, stated that in the case of VAT there will be a reduction of 30 percent for reduced and intermediate rates and a reduction of 20 percent in the standard rate.

"As for Corporate Tax, there will be no change since, nowadays, companies subject to this tax in the Azores already pay less than they did in 2013 as a result of the 20 percent reduction that is currently in force. There was a reduction in Corporate Tax at a national level," said the President of the Government.

"The Government of the Azores sough to defend some principles in this process as much as possible by emphasising that this measure is primarily intended to improve the income of families and safeguard the use of Community funding given its impact on the economy, especially in the maintenance and creation of jobs.

With an estimated impact of 18.5 million Euros, the Government's proposal will be analysed and voted on at the Council of the Government to take place Wednesday, after which it be discussed at the Legislative Assembly of the Autonomous Region of the Azores.

"The proposal is the result of this work and persistence in achieving a solution that benefits Azorean families, especially their income, and safeguards, within the limits of our resources, our capacity to invest, support the economy and maintain and create jobs," said the President of the Regional Government.

Moreover, Vasco Cordeiro stressed that the proposal for tax reduction fulfils the commitment already taken. The Government had announced that it would present a solution by the end of this month, after consulting political parties and social partners.

According to him, the Regional Government had always defended that there was no factual basis or need for the tax increases that entered into force in 2014. 

"Hence, we are naturally pleased with the recognition of the Regional Government regarding the reasons that grounded our proposal, namely the acknowledgement that the efficient and strict management of regional finances would allow, if there had been a political willingness, to maintain the tax differential of 30 percent in the national tax rates in the Azores," said the President of the Government.
 
Vasco Cordeiro also recalled that during 2014, the Azores were forced to pay more taxes and were even deprived of 67 million Euros, which corresponds to the reduction in the amount of national transfers.

Given its persistence and depth, it was possible to work together with CDS/PP on this matter; the result is the proposal that will be under discussion at the Parliament.

Vasco Cordeiro also pointed out that the Azores demonstrated that they are a region that is, simultaneously, a national reference in terms of the rigorous management of public finances and in the implementation of support measures for families and companies.

"If we take into account the various measures already implemented in the Region, Azorean families and companies benefit from a financial support exceeding 230 million Euros, whereas families in Mainland Portugal and Madeira do not benefit from this type of support," said the President of the Government.