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"The Portuguese do not deserve to live in fiscal servitude"

piresdelimaThe words of Economy Minister, Pires de Lima, whose populist comments today guarantee him a place in this evening's headlines and start to pave his way to higher office.

Pires de Lima already is the Minister for the Economy but as an ambitious businessman will have his sights set on the top job. Since an early error in openly backing a reduction in VAT for the restaurant sector, the minister has not made any similar mistakes since.

Today’s statement to reporters at the "Internationalisation of the Economy" conference organised by export body, 'Agência para o Investimento e Comércio Externo de Portugal' (AICEP) was followed by a comment that for the economy and economic recovery, “what we least need right now is more taxes."

These comments come the day after Portugal’s ruling coalition was faced with the Constitutional Court’s rejection of tax raising measures that leave the Treasury in the invidious position of having to raise an extra €800 million in the remaining 6 months of the year from sources that already are at breaking point.
 
Pires de Lima’s commented today that “the recovering Portuguese economy does not need more taxes at this time.”

When asked if there will be tax increases as a result of the decision of the Constitutional Court, which rejected three of the State Budget’s tax-raising initiatives, Pires de Lima said, "I think that the Portuguese do not deserve to live in a state that, permanently and without signs of hope, becomes tax servitude."

"I think it's my duty as Minister of Economy to be clear, I think companies do not support more taxes as these may jeopardise the effort in the economic recovery that we are seeing," said Pires de Lima.

Also, "families do not deserve to pay more taxes, I think they deserve to live in a country that does not subject them, moreover in a permanent way, to a state of tax servitude," said the minister.

About the unemployment rate data released today, Pires de Lima said that "for the first time in many months it has descended below the 15% level,” specifically to 14.6%.

"There is clearly still a lot of unemployment and we need to continue to work both within the private sector and at the state level for the rate to continue to fall."

Pires de Lima is a businessman turned politician, he used to run one of Portugal’s large drinks companies, Unicer, and approaches the economy like most businessmen; create growth in the market you serve and investment, jobs and profits flow.

His broad platform is that Government intervention in businesses and markets is to be resisted and removed where ever possible, especially where it serves no purpose as with much of the red tape currently strangling businesses.

Pires de Lima has to work within the current fiscal and judicial framework set for his ministry but his outspoken comments today set him apart from the usual card-carrying members running the executive and Portugal's ministries who often have little business experience and even less empathy with those that pay their salaries, the taxpayer.

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