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Portugal's PM proposes one-off levy on salaries

Portugal's PM proposes one-off levy on salaries
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People in Portugal may have to hand over half a month’s salary to help the government meet budget deficit targets set out under the country’s 78 billion euro international bailout deal.

Prime Minister Pedro Passos Coelho told parliament the proposed one-off levy will amount to half the monthly salary and will apply to all taxable income but only this year.

“The state of our public accounts means I have to ask for more sacrifices from the Portuguese people. We have goals we have to meet and it leaves us with no alternative. But I promise you I will not let these measures be applied in an unfair and unequal way.” he told parliament.

The government hopes to raise around 800 million euros from the one-off levy. Those on the minimum wage will be spared.

Other restructuring measures will be taken earlier than had been planned.

The government’s plans are virtually guaranteed to get through Parliament.

Elected in June on a mandate of economic recovery, the coalition has an overall majority.