The municipal executive led by Carlos Carreiras revealed on Thursday, October 29, that he will take the proposal to lower the IMI from 0,35% to 0,34% and cut the cost by one million euros per year. with the water tariff for families. Measure is part of the Fiscal Package of the municipality of Cascais, which also provides for a reduction in the water tariff, reducing costs for families by one million euros. Measures are being voted on today at a council meeting and represent a tax relief of three million euros for families residing in Cascais.
The municipality reports on its official website that this tax cut takes place in a year of “high budget complexity” due to the fight against the pandemic. “We put finances at the service of social cohesion. We present a tax package that tries to protect families and companies from the turbulence we are experiencing ”points out Carlos Carreiras.
The tax package has been an instrument that has been presented for eight years by the Cascais Chamber with the objective "to provide citizens with consolidated information on tax that the municipality can legally fix".
Cascais will thus lower the Municipal Property Tax for the fourth consecutive year, making, according to the mayor, an electoral commitment of 2017. For 2021, the IMI rate will be 0,34%, a value already very close to the minimum established in the Law (0,3%) and fixing a maximum of 0,45%. According to Carlos Carreiras, this additional decline represents annual savings of over two million euros for families. “Failure to apply the maximum allowed by law also allows 16 million euros to be left in the pockets of citizens”, he explains.
In addition to this measure, there is the maintenance of an IMI fee for large families: fixed bonuses from 20 euros to 70 euros depending on the aggregate, which is also specified in the Tax Package, which is voted on at a Chamber meeting this Friday.
In IMI for large families, a household with a dependent has a fixed deduction of 20 euros, with two, 40 euros and with three or more dependents, a fixed deduction of 70 euros.
In addition, the Cascais City Council provides for the application of an exemption from IMI for a period of five years, starting from the year of completion of the rehabilitation, to properties located in the Urban Rehabilitation Area (ARU), which may be renewed for an additional period of five years and apply exemption from IMI, for a period of three years, for urban buildings subject to urban rehabilitation. Under the terms of this tax package, the Chamber will decide to increase the IMI rate by 30%, for degraded urban buildings.
“In a year like the one we are living in, citizens would not understand if there was no fiscal relief. The traditional would even be, as in all crises, there would be a worsening of the tax burden ”, signals Carlos Carreiras, adding that in Cascais“ citizens and companies can no longer be burdened with taxes under penalty of further aggravating the economic pandemic that is formed at the tail of the public health pandemic and the social pandemic ”.
One of the flagship measures of the Fiscal Package is a reduction of one million euros in the water tariff. This decrease, with a transversal impact on the household accounts of all households, joins another one, approved during confinement, which resulted in a further reduction of 2,5 million euros in water supply costs. “All in all, and in less than a year, citizens and companies save 3,5 million euros,” concludes the mayor.
In order to stimulate economic activity, the executive will also approve a reduced rate of 0,10% on surcharges for a volume of business that does not exceed 150 thousand euros. For higher levels, the spill will be 1,5%.
“In scenarios of uncertainty, financial sustainability becomes even more relevant”, sustains the municipality, adding that “fiscal policy implies trade-offs, choices” and that, for these reasons, to which are added an acute notion of redistribution , the 5% municipal participation in IRS will remain unchanged.
“The measures presented in the Fiscal Package allow Cascais to continue its ambitious public investment agenda, which generates value chains, employment and prosperity, and to maintain the financial commitment in the 'war effort' against the covid-19”, he concludes.