Tax benefits are a "temptation," but do not solve the problem

The proliferation of tax benefits in Portugal has reached a record high, with 540 benefits costing over 20 billion euros annually. Experts argue that many of these benefits lack proven effectiveness and contribute to increased bureaucracy. Political pressure often leads to new proposals without proper justification, complicating the fiscal landscape. Historical examples, such as the non-habitual resident program, illustrate the challenges in assessing the true economic impact of these benefits. Recommendations for reform include returning certain sectors to standard VAT rates, yet legislative action remains absent. The debate continues as the government prepares for discussions on the state budget.