Regional Government with new measures to mitigate impact of current inflationary period - Communication

Presidência do Governo Regional

The Regional Government of the Azores is available to implement new measures to mitigate the impact of the current inflationary period and is now ready "to study an increase in supplementary remuneration" in dialogue with trade unions.

The announcement was made by the Regional Secretary for Finance, Planning and Public Administration, Duarte Freitas, at the end of the meeting of the Permanent Council for Social Dialogue of the Economic and Social Council of the Azores (CESA), held in Ponta Delgada.

The government official also announced that the Government "is once again available to introduce changes to the tax on petroleum and energy products (ISP)," he said.

"While the ISP tax collection continues to grow at a national level, the ISP tax collection in the Azores was already below the trend in June. Notwithstanding this fact, the Government remains available to mitigate costs that, directly and indirectly, ultimately hit all Azoreans and businesses," he said.

Additionally, the "re-evaluation of projects already approved" under the scope of Competir + will also be considered in order to "accommodate cost increases" and several social support measures may also be further developed.

Last week, the Government had already announced increases in aid for the purchase of medication as well as in family benefits and social electricity tariffs.

Duarte Freitas also recalled that the XIII Regional Government of the Azores, prior to the current inflationary spike, had promoted "tax relief" to the maximum possible extent, with reductions in personal income tax, VAT and corporate tax.

Inflation, as the government official admitted, "is the most unfair of taxes," as it "hits those who have the least the fastest and hardest."

"We have seen a very long period without inflation. This is unusual. Inflationary tendencies emerged even before the war in Ukraine. The XIII Government of the Azores faced a pandemic right from the start and now an inflationary cycle, which is likely to remain. We are following the situation monitoring and committed to helping those most affected. Neither the Azores nor Portugal can have the ambition to change the path of inflation, but we can mitigate its effects, especially for those who are the hardest hit," said Duarte Freitas.