LISBON (dpa-AFX) – The government of Portugal has decided on a relief package for families amounting to 2.4 billion euros to cushion the consequences of inflation and the energy crisis. The measures of the “Family First” program were approved at an extraordinary meeting of the Council of Ministers, Prime Minister António Costa said on Monday evening in Lisbon. The Socialist Party (PS) politician said that this would increase the amount made available by the state to support families this year to a total of around four billion. Aid measures for the companies are to follow soon.
The new measures include a reduction in VAT on electricity from 13 to 6 percent from October and at least until the end of 2023, a one-off payment of 125 euros for every citizen who earns up to 2700 euros gross per month, as well as an extraordinary payment of 50 euros for each dependent child aged up to 24 years.
Pensioners should receive a one-time payment of 50 percent of their monthly earnings. In addition, pensions will be increased by up to 4.4 percent in the coming year. The subscription tariffs for local public transport and train prices will be frozen next year. And rents may not be increased by more than two percent. In addition, some of the measures that have been in place for several months, such as fuel discounts and the suspension of the CO2 tax, will be extended at least until the end of the year.
Costa assured that the financial effort will not jeopardize his government’s goals, such as strengthening the health system and reducing public debt. In the country with 10.3 million inhabitants, people would be hit very hard by the effects of the Ukraine war./er/DP/nas