Portugal don join countries wey get big drop for IRS inside last two years. According to new data, workers for Portugal dey pay average 13.9% tax for income now. This one don put Portugal well below the average of 38 OECD countries and even below European average.
The tax relief start under former Prime Minister António Costa government and continue with current Prime Minister Luís Montenegro administration. But despite this recent relief, medium and long-term, Portuguese citizens still dey pay more tax compared to past years.
Meanwhile, AICEP – Portugal’s Investment and Foreign Trade Agency – don release study about opportunities for Portuguese companies inside EU–India Free Trade Agreement. The agreement wey recently conclude go connect two blocks wey represent about 2 billion consumers and roughly one quarter of world GDP.
The study titled “EU-India Free Trade Agreement: Opportunities for Portuguese companies” systemize main impacts of the agreement. E frame am as structuring instrument for diversification of Portuguese exports and for strengthening Portugal’s position inside global value chains.
AICEP organize workshop this Friday, April 24, specifically for Portuguese companies. The workshop focus on capacity building for Indian market and include participation of AICEP Delegate in India, Miguel Crespo, who go provide local perspective on agreement and main business opportunities.
The EU-India Agreement predict elimination or reduction of tariffs for 96.6% of EU exports to India. E also include relevant advances in areas like customs facilitation, services, electronic commerce, while maintaining intellectual property protection.
From 2021 to 2025, Portuguese goods exports to India grow 5.4% on average annually. The AICEP study identify concrete areas where conditions exist to strengthen Portuguese presence. These include intermediate industrial goods like machines, electrical components, chemicals.
Agri-food sector also get opportunities, especially for olive oil and processed foods. Knowledge-intensive services like engineering, information technologies, energy and digital solutions dey there too.
The document highlight opportunities in sectors where Portugal already get comparative advantages. These include cellulose pulp and paper, cork, and industrial components. Emerging potential dey for aerospace and pharmaceutical areas.
At same time, the study signal challenges, particularly for textile, clothing and footwear sectors. E emphasize need for reinforcement of differentiation, innovation and added value.
AICEP defend say the commercial agreement between EU and India open “relevant window of opportunity” for diversification of Portuguese exports. But since Indian market get “continental scale,” e dey price sensitive and dominated by local operators, the agency leave several tips to stimulate sales of goods and services to this new market.
The agency wey dey under Ministry of Economy explain say e necessary to prepare business fabric for continental-sized market dominated by local players. Their integrated support model include presence in market through Delegation in New Delhi.
In context where market diversification assume growing importance, this AICEP initiative aim to equip national companies with qualified information and concrete instruments for more informed, structured and competitive approach to Indian market.
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