The centrists set the agenda [25 June] in the plenary session of the Assembly of the Republic with a debate on a bill aimed at doubling the IRS deduction for families with three or more children and a resolution recommending that the Government create a strategy to boost birth rates.

When presenting the initiatives on 24 June, the parliamentary leader of the CDS-PP indicated that, with this proposal, "Portuguese families will be able to deduct €1,200 per year for the third child and subsequent children".

“We propose that the doubling of this increase for the third and subsequent children be done gradually, that is, 50% next year and 100% from 2028 onwards. This means that next year, the deduction for the third and subsequent children will be €1,050 and that in 2028 it will be €1,200,” he said.

National birth rate strategy

The CDS-PP also brings to this debate a draft resolution (without the force of law) that recommends to the Government the creation of a national strategy for the birth rate.

Paulo Núncio advocated “tax incentives for families with children, particularly with regard to the family IMI, ISV and IUC” and also “for companies that create nurseries, crèches and kindergartens for the children of their employees”, in addition to “strengthening the network of crèches nationwide, free access and increasing the number of places”.

The creation of “tax benefits for companies that hire pregnant women, that hire mothers and fathers with children up to three years old, that promote flexible hours and other incentives for better work-life balance” is a proposal from the CDS-PP.

In addition to the proposals from the CDS-PP, the party that scheduled the debate, PS and Livre also presented bills, and PS, JPP and Chega presented draft resolutions.

The PS bill aims to strengthen the Child Guarantee Supplement, “ensuring that its value follows the increases in deductions for dependents” provided for in the IRS Code.

The socialists also recommend that the government assess the implementation of this supplement and disclose the number of beneficiaries covered, the amounts allocated, and the distribution by territory and income bracket.

The Chega party urges the Government to adopt an “Integrated Plan for Promoting Birth Rates and Supporting Families, promoting population growth, with a special focus on the country's interior regions, through benefits and incentives related to taxation and Social Security.”

The Livre party's proposals aim to review the deduction regime for education and training expenses, increase the deduction, create a “refundable tax credit,” and increase the base deductible amount per dependent.

The JPP party recommends “the creation of a true family quotient for IRS purposes, through the consideration of dependents in determining the relevant taxable income for the application of progressive rates” and strengthening family allowances and prenatal allowances.