Friday, 12 October: All main newspapers, including Correio da Manhã, are reporting that the government’s draft budget for 2013 confirms a huge tax hike which will weigh heavily on many households, with lower incomes losing up to one monthly salary.
«Gaspar gave in to Portas», writes weekly newspaper Sol, after Paulo Portas as leader of junior coalition partner CDS-PP pressured Minister of Finance Vítor Gaspar during last Thursday’s Council of Ministers where the 2013 state budget was drafted. According to the weekly, the government backtracked on its intention to make changes to property tax and eased its proposed changes to personal income tax brackets, among other measures, as €15m worth of spending cuts ease the tax burden.
«4% surcharge on income tax starts being paid in January», reports Público, about the government’s 2013 state budget, revealing that the new personal income tax brackets will also affect lower incomes. The daily also lists a few other changes included in the draft budget, claiming that the tension between the two coalition partners has finally eased.
Correio da Manhã
«New income tax to crush families», writes Correio da Manhã, as the government’s new income tax brackets are set to increase the tax burden for many households. According to the daily, the lower bracket is to increase from 11.5% to 14.5%, while a 4% surcharge, which is to be paid monthly, will further increase the burden. The paper estimates that those with lower incomes will lose the equivalent of one monthly salary.
Diário de Notícias
«Not even funerals were spared», discloses Diário de Notícias, as the daily reveals that the government’s 2013 draft budget confirms a huge tax hike and cuts to several benefits, including the bereavement benefit which is to be halved. The paper also reveals that unemployment benefits will be slashed another 6%, salaries above €80,000 will pay 54.5% in income tax, vehicle tax is also to be increased, and a 2.5% solidarity tax is to be introduced for higher incomes.
Jornal de Notícias
«2013 state budget: Painful», writes Jornal de Notícias, as the government is to yield over €2bn with its “brutal income tax hike” included in the 2013 state budget. The daily highlights the main measures included in the draft document, including how pensions above €1,350 will see cuts between 3.5% and 10%.
«Gaspar’s blow to the middle class», reports i, about the government’s 2013 state budget, revealing that unemployment and sickness benefits will be subject to taxes, the government is to cut back on its financial support to the Autonomous Region of Madeira, 10,000 public servants are to be made redundant, and personal income tax is to increase for everyone while tax deductions are to be slashed.
«Families earning over €80,000 a year to be taxed as rich», writes Diário Económico, as according to the government’s draft budget, a 4% surcharge and the new tax brackets will take 54.5% off the earnings of those making over €80,000 a year. According to the financial daily, independent workers are also to be affected by the tax hike, as vehicles, tobacco and property rents will also be subject to higher taxes.
Jornal de Negócios
«Unemployed and independent workers to lose more», reports financial newspaper Jornal de Negócios, also listing some of the main measures included in the government’s draft budget for 2013, as businesses are to pay higher corporate tax and foundations are to lose exemption from paying corporate tax and property tax.
«It would be a crime if Ronaldo doesn’t win the Golden Ball», writes A Bola, quoting Portuguese manager José Mourinho, who claims that Messi can only be the best on the planet if Cristiano Ronaldo comes from another world.
«We have the best in the world», reports Record, focusing on Portuguese superstar Cristiano Ronaldo, as he returns to the spotlight in Moscow ahead of tonight’s match between Portugal and Russia for the 2014 World Cup.
«Summit of leaders in Moscow», writes O Jogo, as Portugal and Russia get ready to vie for the leadership of Group F in the qualifying stage for the 2014 World Cup.