Local authorities charge € 207 in taxes per citizen annually – The Economic Journal

Local authorities charge € 207 in taxes per citizen annually - The Economic Journal


The municipal councils charge, on average, 207.86 euros to each citizen in taxes per year. The data are part of a study released Tuesday by the Foundation Francisco Manuel dos Santos (FFMS), which shows that the tax burden is higher in the chambers of Lisbon and Algarve.

The FFMS study, "Quality of Local Government in Portugal", reveals that two-thirds of municipalities tax citizens below the national average. These are municipal chambers which have some common characteristics, such as the reduced population and rurality. Fifteen of these municipalities also charge less than € 100 annually to citizens.

On the back of the coin, 14 rooms – all in the regions of Lisbon and Algarve, with the exception of Grândola – charge more than 500 euros per person per year.

"The quality and sustainability of services must be complemented by an appropriate fiscal burden. High local taxes hamper consumption and development of the private sector, so that per capita municipal taxes are an important indicator of good local governance practices, "says António Tavares, a member of the Center for Research in Political Science at the School of Economics and Economics. Management of the University of Minho and author of the study.

António Tavares also says that "these data reveal a strong association between income, seasonal dynamism and littorality, with the capacity to collect taxes at the level of the municipality."



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