Government should cut IRC to up company competitiveness says banker

Sir António Horta-Osório, a former celebrity banker, suggests that the government should reduce corporation tax to enhance company competitiveness.

He argues that with balanced accounts and a budget surplus, the government should focus on improving the quality of life for Portuguese citizens. This can be achieved by reducing taxes on companies, specifically the IRC and the Single Social Tax (TSU), which could lead to higher wages.

Speaking at a conference organized by Jornal Económico, Horta-Osório emphasized that now that the country’s finances are stable, the next challenge is addressing salaries. He believes that Portuguese society should urge the government to use the budget surplus to boost productivity and quality of life by lowering taxes on companies, which are the wealth creators in Portugal.

By reducing the IRC or TSU, companies can become more competitive, innovate, hire more people, and increase wages, ultimately improving the quality of life for the Portuguese.

Horta-Osório also noted that while Portugal has improved salaries since 2007, other countries like Spain have seen salaries rise by 30%, and in Europe, salaries are nearly double.