Portuguese parliament approved the country’s state budget for 2015 on November 25, 2014 which signals continuing austerity measures.
Within key measures in the 2015 budget is the continuation of a 3.5 % income tax surcharge, twinned with a fiscal credit in case of a better than expected revenue turnout from some taxes. The government thought the surcharge is required as a consequence of the need to hold the deficit to lower the level agreed with its EU partners and international lenders.
The governing coalition also approved cut down the corporate income tax rate to 21% for next year. The Socialist Party, voted against the proposal, having broken off a deal with the government to steadily lower the tax; it had proposed maintaining 23% nominal rate for next year.
