Portugal new tax increase for 2012

Portuguese Finance Minister Vitor Gaspar announced Wednesday a new tax increase for 2012 targeting at taxpayers who earns more than 66,000 euros (94,285 U.S. dollars) a year.

The new tax will be part of a plan to reduce the debt-ridden country’s deficit to 0.5 percent of the GDP by 2015.

For taxpayers that receive over 66,000 euros annually, health, education and housing expenses would not be deductible on the income tax.

There would be an extra income tax payment for those receive over 153,000 euros a year. They would have to pay 2.5 percent more on their income, apart from the 46.5 percent already collected.

According to Gaspar, the extra tax would mean 100 million euros of increase to the Portuguese treasury.

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