The Secretary of State estimates that municipalities will receive another 7.5% with new local finances

The State Secretary for Tax Affairs told Parliament Thursday that municipalities will receive with the revision of the local finance law an "increase of 7.5% on average", not counting funds for new skills . According to António Mendonca Mendes, the proposal to amend the law on local finances allows municipalities as a whole, over the next three years, to benefit from their current skills "on average 7.5% more per year they receive today. "

" This means, for example, that in 2019, the municipalities will receive, as a whole, another 200 million euros, "said the minister, saying that A 7.5% increase in transfers to municipalities, when the increase in tax revenues "is about 3%", represents "a huge effort" for a more balanced distribution of public resources between central and local administrations.

The Minister, expressing to the Committee on Budget, Finance and Administrative Modernization, as part of the government initiatives debate, PCP and left bloc to amend the local finance law, stressed that the payment of municipal property tax (IMI) on assets

"It only makes sense for the participation of local authorities in VAT [Imposto sobre Valor Acrescentado] if it associates a concept of territoriality", explains the secretary of state, adding that it is not necessary to increase revenue but to promote the use of buildings. the government and the tax administration will create conditions to assess where VAT on accommodation and catering, in addition to communications, water and energy is paid.

In this sense, a diploma will be sent shortly for consultation of the National Commission for Data Protection, which will allow access to the location of billing terminals to "measure where VAT has been liquidated then distributed "by the municipalities," said Mendes Mendes.

Social Democrat Sara Madruga da Costa accused the government of with the proposal to amend the local finance law, to violate the "administrative political status" of the autonomous region of Madeira and "the illegal appropriation of recipes "also from the Azores. "I do not see in this proposed local finance law any interference in the powers of the autonomous regions, I do not see any illegal appropriation of income and we consider that there is no violation of the administrative political status of the autonomous region of Madeira, "said António Mendonça Mendes. Socialist Paulo Trigo Pereira reiterated his "disappointment" with the government's bill and warned against the risk of municipal participation in VAT revenues, without serious studies, when in the simulations of the current law he has It was noted that (19659002) Mr João Vasconcelos (BE) regretted that the "process of such a structuring law" had been promptly dealt with by the European Parliament and expressed the fear that the decentralization of powers would be limited to "shaking" areas such as health and

As part of the specialty debate, only the Minister of the Interior and the presidents of the National Association of Portuguese Municipalities (ANMP) and the Association National Parish (Anafre) were heard at the Committee on Budget and Finance

The working group of the local finance law decided Wednesday to extend the deadline for submitting amendments to the proposal of the government and the other parties before July 16 (instead of 13), with vote and ratification in committee on Tuesday, for a final vote of 18, at the last plenary session of this legislative session.