Santiago do Cacém tax reduction sparks political debate

The municipal council of Santiago do Cacém has decided to reduce its IRS participation rate from 5% to 4.5%, a move that has ignited intense political controversy. Led by the Somos Todos Cidadãos movement, the council defends the decision as a fulfillment of an electoral promise aimed at reducing the tax burden without impacting social support.

Opponents, including the CDU, have criticized the measure, arguing it creates inequality among taxpayers. Critics suggest that the estimated 250,000 euro loss in revenue could be more effectively allocated to essential services such as housing and transportation.