The analysis of the 2025 State Budget by the Portuguese Large Families Association (APFN) reveals that once again families with dependent children have been forgotten.
Despite the commitment included in the government’s program to: “Gradually achieve the objective of the tax and social security systems to consider the number of children per family, including tax advantages for large families”, but there is not a single measure in this regard.
The APFN considers it incomprehensible that, in a scenario of serious demographic deficit, families with children continue to be manifestly disadvantaged in multiple areas. It is imperative that the existence of children in the family is considered whenever the real economic condition of a family is evaluated and that this evaluation has an impact on all calculations, namely, the Minimum of Existence, the IMI and IMT exemptions, the limits of deductions from the IRS collection of general expenses, housing costs, education and health expenses.
It is essential that the existence of dependent children is duly considered within the scope of the IRS as measures that correct progressivity and make a fairer reading of their ability to contribute.
Analyzing some of the measures planned, the APFN finds that not only do they not correct, but they increase the existing discrimination, as is the case with the reduction in VAT on electricity.
It is planned to reduce VAT to 6 per cent for contracted power up to 6.9 kVA and for consumption up to 200 kWh/30 days or 300 kWh/30 days if there is a large family. A single person is entitled to 200 kWh/30 days at 6 per cent VAT, but in a family of four, each person has only 50 KW of reduced VAT. In addition, limiting this measure to a contracted power of up to 6.9 kVA makes it impossible for many large families who need more power to access reduced VAT.