He Senate of the Parliament of Uruguay approved with express treatment and by unanimity reductions in Personal Income Tax (IRPF) and the Social Security Assistance Tax (IASS). The project, now with half a sanction, will go to the Chamber of Deputies, where a quick discussion is also expected.
In addition, the legislative body approved the modifications promoted by the Executive Power in the Income Tax of Economic Activities (IRAE) fictitious, for the benefit of micro and small businesses.
As expected – and some opponents had anticipated – the Broad Front (FA) accompanied the project despite the criticisms elucidated in recent days. While, 28 of the 28 senators present voted in favor.
The parliamentary process foresees, meanwhile, the reception of the Deputies Finance Commission to the government’s economic team this Wednesday. After being approved there, it will remain for discussion in the venue and, if sanctioned, the promulgation by the Executive.
According to the minister lily arbelechethe tax cut reaches 327,000 workers, and of them “some 200,000 have a very significant benefit”; while 63,000 employees stop paying personal income tax. For his part, he emphasized that the proposed changes to the IASS “reach all retirees and pensioners” and that “20,000 stop paying” this tax.
The ruling party defended the feasibility of the reduction; while for the FA, “something is something”
“This reform it is done because it can be done” and “it is done without going beyond the limits set by the three pillars, fundamentally of the fiscal rule,” said the white senator and informant member Sergio Botana.
The representatives of the Frentamplista caucus emphasized their position that, although they were willing to accompany, the tax relief is “insignificant”. The senator Mario Bergara expressed that the fiscal resignation was of “small magnitude”, but rescued: “It’s something”.
In addition, there was Design qualms of measure. According to the FA, for the 70% of low-income Uruguayan families “there are no measures.”
For his part, Botana pointed against the opposition and said: “It is nice to give this news, not the growth of spending when the economy is bursting, but the growth of spending as a result of good management of public accounts.”
Source: Ambito
