Larger transfers from the central government will compensate municipalities for the loss of revenue from municipal property tax. The change to that tax and the suspension, likewise provided for in Decree Law 93/2008, of the power of local government bodies to raise the rates of the taxes within their competence entail a reduction in their degree of fiscal autonomy.
BIS Review 94/2008  1  The abolition of municipal property tax on primary residences pursuant to Decree Law 93/2008 comes on top of the reliefs already introduced by the Finance Law for 2008. According to the information contained in municipalities’ outturns, about 5 per cent of their total budget revenue came from municipal property tax on primary residences.