The maintenance of the Municipal Property Tax (IMI) rate and the refund of the share of the Personal Income Tax (IRS) were approved in a private meeting of the executive, led by the Por ti Lisboa coalition (PSD/CDS-PP/IL) and chaired by Carlos Moedas (PSD).

The IMI proposal, which sets this rate at 0.3%, the minimum allowed by law, was approved with the votes in favor of the Por ti Lisboa coalition, the PS, Chega and PCP, and the abstention of BE and Livre, according to a municipal source.

Within the scope of this tax, increases and reductions were also approved, namely a 30% increase for dilapidated urban buildings with works ordered by the municipality that have not yet been completed, and 30% reductions for properties classified as being of public, municipal, or heritage interest.

The municipality will also maintain the so-called family IMI (Municipal Property Tax), with a reduction in the rate of 30 euros for families with one dependent, 70 euros in the case of two dependents, and 140 euros for households with three or more dependents.

The IMI (Urban Property Tax) rate for urban properties can vary between 0.3% and 0.45%, with municipalities setting the value within this range.

The proposal that provides for the full return of 5% of IRS (Personal Income Tax) was approved by a majority with the votes in favour of the "Por ti Lisboa" coalition, the abstention of the PS (Socialist Party), and the votes against of the PCP (Portuguese Communist Party), BE (Left Bloc) and Livre (Free).

In a statement sent to the Lusa news agency, a source from the Livre party's council explained that they voted against the proposal for a full IRS refund because they consider that this measure "aggravates inequalities" and compromises tax justice.

Citing councilwoman Joana Alves Pereira, the statement says that by approving this measure, the municipality is foregoing "90 million euros in revenue," an amount that "mainly benefits those with higher incomes."

Regarding the IMI (property tax), "Livre considered that the opportunity to introduce additional mechanisms for conditional increases was lost."

Also in a statement, the Left Bloc explained that they voted against the proposal for a full IRS refund because they consider it an "unfair and socially unbalanced tax expenditure."

According to the Left Bloc, the majority of the 90 million euros refunded "is allocated to the 10% richest taxpayers in Lisbon, who correspond to the richest 4% in Portugal."

Both proposals still have to be discussed and voted on by the Lisbon Municipal Assembly.