IMF urges Portugal to reverse youth tax break due to lack of effectiveness

The IMF recommends Portugal reverse the "IRS Jovem" tax benefit for young people due to a lack of clear evidence of its effectiveness. The IMF report states the exemptions increase budget costs and create distortions without clearly curbing youth emigration, advising their reversal. The "IRS Jovem" program, expanded this year to include those up to 35, offers progressive income tax exemptions over ten years.