Portugal to target middle classes with €1.5bn income tax cuts

According to the OECD, in 2022 the tax burden on workers' income in Portugal was the ninth highest among the 38 OECD member countries

Prime Minister Luis Montenegro said that tax cuts and economic reforms would create a "virtuous circle" in which the economy could grow close to or above 3.5% by the end of the four-year legislature.

Portugal's new minority government will approve tax cuts for the middle class worth €1.5bn next week in an effort to spur slowing growth and investment, Prime Minister Luis Montenegro has said. 

"(A) high and complex tax burden is an economic barrier that compresses wealth, limits productivity and job creation," he said in a speech opening a two-day parliamentary debate on the centre-right government's inaugural programme.