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Portuguese lawmakers veto proposal to cut single social tax

Xinhua, January 26, 2017 Adjust font size:

Portuguese lawmakers on Wednesday vetoed a proposed reduction in the single social tax for employers.

The proposed cut, by 1.25 percentage points, in the single social tax was designed to help Portuguese companies who must bear the 27-euro increase in national minimum wage.

The proposal was vetoed down by the Social Democrats Party, the Left Bloc Party, the Communist Party and the Green Party.

Portuguese Prime Minister Antonio Costa, leader of the Socialist Party which is backed by the Left Bloc and Communist Party in parliament, called for an emergency meeting with social partners on Wednesday evening to discuss alternatives to the measure.

The Left Bloc argues that the reduction of single tax would be a "prize" for companies which opt to pay low salaries to employees.

The Portuguese government led by Costa pledged to reverse austerity imposed by the previous administration, namely raising the national minimum wage and restoring salaries and pensions.

The monthly minimum wage was raised from 530 euros to 557 euros in 2017 and the authorities have pledged to raise it to 600 euros by 2019. Endit