PS Proposes Municipality Participation in VAT from Hospitality and Services in Madeira
Madeira GuideThe Socialist Party of Madeira is advocating for local municipalities to receive a share of VAT revenues from the hospitality and service sectors to boost local investment.
The Socialist Party of Madeira (PS-Madeira) is set to introduce a proposal in the Madeira Legislative Assembly aimed at adapting national legislation to allow municipalities to receive a portion of the VAT revenues collected from sectors such as hospitality, catering, utilities, and communications within their territories.
CĂ©lia Pessegueiro, a leading figure in PS-Madeira, announced this initiative following discussions with Hugo Marques, the Mayor of Machico. The meeting underscored the need for Madeira to legislate on this matter, as similar adaptations have already been made in the Azores and mainland Portugal.
The proposal suggests municipalities should receive 7.5% of the VAT revenues from these sectors. Pessegueiro emphasized that this revenue is crucial for municipalities to fund local projects and meet various community needs. She criticized the slow adaptation of legislation that benefits local governance in Madeira, noting that changes often favor the regional government instead.
Pessegueiro stated, "This is a fair way to distribute a revenue stream currently monopolized by the Regional Government, ensuring that local municipalities can also benefit and invest in their communities." She highlighted that not all municipalities have the opportunity to secure program contracts with the Regional Government, making this revenue share even more vital.
The proposal is seen as a critical step in supporting local autonomy and providing municipalities with the financial tools necessary to address local challenges and enhance public services for residents and tourists alike.
Sources
Madeira Guide
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