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Portugal Risks Spooking Investors With New 2017 Property Tax

  • Government to submit 2017 draft budget to parliament on Friday
  • New property tax may hurt Chinese and other foreign investors
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Portuguese Prime Minister Antonio Costa is beginning to scare some investors.

Almost a year into the role, Costa has succeeded in rolling back some austerity measures without alienating Portugal’s euro-area partners and creditors. Now, as his Socialist government prepares to raise indirect taxes and levies on property in its 2017 budget to help pay for higher pensions and state workers’ salaries, some business leaders are saying he may be going too far. The budget proposal was approved at a cabinet meeting on Thursday and will be presented on Friday.