Centromarca – the Portuguese association of branded food companies – believes that the proposal for the state budget for 2023 (OE2023) contains “overly optimistic grounds” in the document and “does not contribute to reducing the loss of purchasing power of the Portuguese”, according to a statement sent to news departments this Wednesday .
The association ends by emphasizing that the document has some positive points for companies, however, “seems to be based on macroeconomic forecasts.”
“Despite existing budgetary constraints, the proposal introduces some positive measures for national businesses, including injection of energy costs, selective reduction of IRC, measures to support primary production, and measures aimed at fiscally limiting the effects associated with necessary wage growth. However, it appears to be based on macroeconomic projections – GDP growth, budget deficits and inflation rates – overly optimistic and out of step with projections made by major economic partners,” the same statement explains.
Among the less positive figures, Centromarca highlights a salary update (in the public and private sector) two to four points below the government’s proposed 7.4% inflation rate for 2022, which would be “clearly lower than what is likely to close the year.” . “.
Centromarca also shows how less positive things are “sub-inflation pension renewal, single circulation tax (IUC), vehicle tax (ISV) and municipal transaction tax (IMT) updated by 4%, such as alcohol tax , Alcoholic Beverages and Beverages with Added Sugar (IABA)” and “A tax on extraordinary profits in the oil, gas, coal and refining sectors, which will be introduced later this year,” the same note states.
According to the association, the support provided in OE2023, in addition to the support provided in the Energy for Promotion package, increases the cost differential and competitiveness gap of the Portuguese business structure.
Centromarca President Nuno Fernández Thomaz emphasizes that “the measures taken with regard to the state budget imply an even greater drop in purchasing power than that already felt by Portuguese families, which directly affects consumption and has a strong negative impact. about the associated companies of Centromarca”.
The official also adds that under any circumstances, less purchasing power means a worse quality of life. “The inflation we are facing is attacking the economy on a global scale and cannot be controlled in or out of Portugal. Therefore, it is essential to take action to avoid an even sharper fall in purchasing power, with dire consequences for the economy,” emphasizes the president of Centromarca.
