Portugal to lower taxes in effort to revive flagging economy

Portugal's government plans to lower company tax rates "significantly" as part of a wider plan of incentives to drag the economy out of its worst recession since the 1970s, economy minister Alvaro Santos Pereira said.

He also promised to step up the financing of the economy by state-owned bank CGD that will provide €1 billion euros this year and €2.5 billion in 2014, and later to create a development bank to boost such funding further, especially for exports-oriented small and medium-sized companies.

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"We want more investment and the main instrument here is the reform of the company tax that we intend to carry out via a significant decrease in tax rates to make investment more attractive," Mr Santos Pereira told a briefing.

Read more: Portugal to lower taxes in effort to revive flagging economy - European Economic News | EU Budgets, Trends & Spending | Irish Tim - Wed, Apr 24, 2013