Political Tensions Rise as Left-Wing Parties Reject Key Tax Proposal in Madeira

Accusations Fly Over Economic Proposals

Miguel Albuquerque, the President of the Regional Government of Madeira, has accused left-wing parties of having a "dysfunctional and political complex" for rejecting a significant proposal from the PSD and CDS. This proposal aimed to allow companies based in the Madeira Free Trade Zone to be taxed at a rate of 5% under IRC until 2033. Instead, the Socialist Party's proposal, which limits this tax benefit to 2028, was approved in the Assembly of the Republic.

Economic Implications

Albuquerque argues that left-wing parties consistently oppose measures that could enhance job creation and economic attractiveness. He cited the example of the Free Trade Zone, where the Socialist Party's proposal extends the deadline for issuing operating licenses until December 2026, which he believes undermines the economic potential of the region.

Government's Position

In a recent statement, the Regional Government criticized the Socialist Party (PS) for dismissing the PSD and CDS-PP's proposal that would have extended the IRC tax benefits to 2033. Albuquerque contended that the PS acted against the best interests of the Madeira region and its population by rejecting a proposal that would have provided greater stability, confidence, and predictability for businesses operating in the Free Trade Zone, especially in comparison to measures being implemented in the Canary Islands.

Key Takeaways

• Miguel Albuquerque criticized left-wing parties for their rejection of a tax proposal beneficial to Madeira's economy.
• The approved Socialist Party proposal limits tax benefits to 2028, contrasting with the rejected 2033 extension.
• Albuquerque asserts that left-wing opposition harms job creation and economic growth in the region.