"The measure under discussion here extended the maximum 30% tax reduction differential up to the 6th IRS bracket [currently applied up to the 5th bracket], covering gross salaries up to approximately 3,292 euros per month, corresponding to 3.3 times the minimum wage and above the average wage," said Regional Finance Secretary Duarte Freitas at the plenary meeting.

The PSD/CDS-PP Regional Government's bill, which adapts the tax rate to the law reducing general personal income tax rates approved Wednesday in the National Assembly, also reduces the rate applicable to the 7th bracket by 15%, the 8th bracket by 9%, and the 9th bracket by 3%.

The tax differential provided for in the Regional Finance Law allows for a reduction of up to 30% in tax collection in the Autonomous Region of Madeira compared to the mainland.

"We not only directly benefited taxpayers with income up to the 6th bracket, but we also eased the tax burden on higher brackets, encouraging increased production and subsequent income," said Duarte Freitas.

The minister explained that the measure involves a lease worth approximately 7 million euros, with a "direct and positive" impact on the disposable income of Madeiran families.

"Since 2016, the region has implemented a series of tax breaks that have resulted in more than 748 million euros returned to Madeirans and Porto Santo residents," he emphasized.

The legislative decree was approved unanimously in the final overall vote.