AEP – Associação Empresarial de Portugal considers, in a statement sent to newsrooms, that the proposed State Budget for 2026 does not include the measures necessary to promote the country’s growth and economic development.
Despite recognizing some positive proposals, the association argues that these are insufficient given the high economic uncertainty and current geopolitical tensions.
“The State Budget should reflect a macroeconomic orientation more focused on companies, which are the main drivers of wealth and job creation”he highlights in a statement.
AEP highlights that the reducing the tax burden by just one tenth is not enoughwhich results in an unfavorable comparison with other European countries in terms of taxation.
The association, chaired by Luís Miguel Ribeiro, emphasizes that the current level of corporate taxation compromises the attractiveness of investmentboth national and foreign. Furthermore, the reduction in taxation on labor income is considered insufficient to increase purchasing power and attract talent.
AEP argues that “a more efficient Public Administration” could allow a reduction in the tax revenue necessary to balance public accounts, but states that the Government’s proposal does not present evidence of efficiency gains.
For AEP, It is essential to promote economic growth to increase tax revenue in a sustainable way. The association also highlights the need for greater labor flexibility and the elimination of excessive bureaucracy that harms companies and citizens.
AEP also expresses the expectation that the parliamentary discussion on the Budget will take place in a constructive manner and that measures will be adopted that align with a vision of more competitive and sustainable economic development.