The decision was made at a meeting of the Regional Government Council (PSD/CDS-PP), led by Social Democrat Miguel Albuquerque, held in Funchal. The proposal will now be submitted to the Madeira Legislative Assembly, where Social Democrats and Christian Democrats form an absolute majority.

The Madeiran government will increase the maximum 30% tax differential, established in the Regional Finance Law and currently applied to the 5th and 6th IRS tax brackets, while also ensuring a 15% reduction in the 7th bracket, 9% in the 8th, and 3% in the 9th.

The tax differential allows for a reduction of up to 30% in tax collection in the region compared to the mainland.