16/10/2012

Austerity Measures in Portugal


The austerity measures in Portugal one of Europe's poor economies continues to affect the population, as its debt rise higher into 2013, the tough bailout agreement is enforced by the so-called troika the European Commission, the European Central Bank and the I.M.F.
Portugal is now about to enter a period of social unrest.. the austerity measures are unleashing rage and chaos in Portugal


 - Hospitals are closing.
- State benefits, public wages and pensions are being cut.
- New taxes have been added, and old taxes increased.
- The economy is shrinking.
 - The ratio of Portugal’s debt to its overall economy, or gross domestic product is 118.6 percent.
Officially, unemployment is at 17.9 percent, and more than 42 percent of the country’s young people are out of work.
According to WorldWatch the government is under estimating the true jobless rate, especially for youths.

- Opposition leaders and trade unions have called for general strikes.
- The government’s budget deficit remains un-controlled.
- Portugal’s economy shrank by 1.5 percent in 2011 and is expected to contract more than 3 percent in 2012.
- Cost of education has doubled, university fees are one of the highest in the world.
 - Health care costs have more than tripled in the past year, pharmacies have closed, certain medicine are now non-existent.
 - Energy prices for electricity and gas, water are one of the highest in the world.
Electricity prices for next year have been announced, there will be a 2.8% increase for consumers, the reason given is that the demand has fallen!!!

 
- Petrol prices for the average motorists are the highest in the world, there is a price fixing between the petrol companies Galp, BP, Repsol and Cepsa, they all practice the same consumer price, a litre of regular 95 Octane is now a staggering 1,780 €.
These petrol companies with the support of the government increase the prices on a weekly basis using every pretext to do so.
- The (ISP) (called the Robin Hood Tax) a tax that petrol companies pay will also increase in January 2013 ,1,10€ for each thousand litres of regular octane and 2€ for each thousand litres of diesel, this increase will be passed to the consumer.
This month alone prices at the pump have increased by 5 cents per litter, this alone will further reduce the buying capacity of the population as money
becomes a luxury commodity.
Petrol consumption this year has decreased by more than 15% and all indications show it will continue do so.

- Almost every activity in Portugal is Taxed
- VAT has increased in all areas in special the supermarket prices have seen the vat rise to 23%.

- The wages are taxed by 23.5% and now to aggravate the situation there is a solidarity 4% Tax making a total of 28.5% of the salary going to the Government. (see table)
There are now five Tax scales to the previous 8.


NEW IRS TABLE

Until 7.000€ - 14,5%

Between 7.000 and 20.000 - 28,5%

Between 20.000 and 40.000 - 37%

Between 40.000 and 80.000 - 45%

More than 80.000 - 48%

2012 IRS TABLE

Until 4.898€ - 11,5%

Between 4.898 and 7.410€ - 14%

Between 7.410 and 18.375€ - 24,5%

Between 18.375 and 42.259€ - 35,5%

Between 42.259 and 61.244€ - 38%

Between 61.244 and 66.045€ - 41,5%

Between 66.045 and 153.300€ - 43,5%

More than 153.300€ - 46,5%

PORTUGAL IS NOW A WORLD LEADER IN BAD TAX REFORMS , NO NATION CAN COMPETE OR SURVIVE WITH TAXES THIS HIGH.

(WILL CONTINUE)







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