PS wants to offset the drop in ISP and Zero VAT with IRC and the end of moderate rents

The PS plans to temporarily reduce the ISP and exempt VAT on essential food items, offsetting revenue loss by suspending IRC cuts and revoking moderate rents. These proposals were announced by PS parliamentary leader Eurico Brilhante Dias, who stated that around 280 amendments to the 2027 State Budget will be presented without jeopardizing the budget balance. The ISP reduction will match the VAT decrease on fuels, while the VAT exemption on food will be compensated by eliminating tax incentives for moderate rents capped at 2,300 euros. Brilhante Dias emphasized that the suspension of IRC and the end of moderate rents will exceed the costs of the proposed initiatives.