The figure of this cost according to the Executive is 110 million pesos, but that private raise to 150 million pesos. The objective: to transfer those pesos that Uruguayans should not pay to the consumptionboosting the Uruguayan economy, especially in sectors such as services and commerce, which have not yet managed to recover and return to levels pre-pandemic.
Lacalle Pou assured that it is “in a position to proceed with a tax reduction” thanks to a growing economy. However, it is estimated that the forecasts for this year will be revised downwards as a result of the drought and a lower demand for Uruguayan goods since China.
The first figures of exports of this year, disseminated by Uruguay XXI the eve of the president’s presentation in Parliament, reported a drop of 8% year-on-year. In the case of the meatUruguay’s main export product, the collapse reached 21%.
The tax reduction defended by President Lacalle Pou – a measure contrary to the regional one of raising the tax burden, even if it is for sectors with greater purchasing power to large industries, to finance social policies – could also have a impact on fiscal deficit at a time when the Executive set itself the goal of reducing it.
For this year the goal is 2.6% of GDP after having achieved a decrease to 3.2% in 2022 from the 5.8% that it reached during the Covid-19 pandemic.
In order to comply with it, it will be necessary to compensate for the reduction in personal income tax, the IASS and the cuts to small companies with faster economic growth than last year, when Uruguay set a record for exports in various areas, or with a lower public spending.
Source: Ambito
