He Ministry of Economy and Finance (MEF) carried out a survey of the impact of the tax relief measures for the border departments and sent the document to Parliament based on the critical situation that the border areas of Uruguay due to the exchange rate difference and, mainly, the coastline.
Although no representative of the MEF attended the Special Border Commission with Argentina of the Chamber of Deputiesthe portfolio led by Azucena Arbeleche sent a document in which it detailed some of the measures promoted by the government in recent months to alleviate the situation generated as a result of the price gap with the neighboring country and its impact on employment and trade in the area. Meanwhile, the measures as a whole meant – whether through subsidies or tax waiver – aid equivalent to 3,176 million pesos, about 80 million dollars.
Tax relief
The main point highlighted by the report was the “tax relief” for micro and small businesses of the border area. This initiative reached a total of 5,816 companies and represented a sum of 241.6 million pesosabout 6.12 million dollars.
Likewise, of the total potential taxpayers – 9,007 residents on the border with Argentina or with Brazil, who pay Unified Monotributo Tax Benefits, Minimum VAT, IRAE and IP—, there were 1,442 who officially applied to the measure. For the government, the tax waiver it was of 181.8 million pesos.
The MEF document also reports on the reduction of Imesi in fuels in the border area, which since June 1 has reached 40% on the coast. In the northern area, on the border with Brazil, the reduction remained at 24%.
In parallel, other initiatives were applied to provide “some relief” to micro and small businesses on the border. For example, the UTE bonus to fixed charge and power electricity rates that will remain until next April; the distribution of Solidarity Days in the departments with the highest unemployment; and the subsidy to 34 companies that hired 63 coastal residents under the program Groups in a Situation of Social Vulnerability —which involved an amount of 2,932,390 pesos.
Decentralization of investments
Regarding the promotion and evaluation of investment projects in border departments —Artigas, Salto, Paysandú, Black river, Rivera and Cerro Largo—, The MEF highlighted that two points were increased in the “decentralization factor.”
Among the measures identified as successful in this regard, Arbeleche’s portfolio listed the promotion of the production of worked agates and amethysts; the modification of the regime Promotion of Industrial Parks and Scientific and Technological Parks; and investment in the area of Fray Bentos Border Crossing by 14 million dollars.
On the other hand, as of October, it was established that micro, small and medium-sized companies located up to 60 kilometers from the land border crossings with Argentina and Brazil, and that are dedicated to retail trade, can access guarantees of the National Guarantee System (SIGA)by paying a single discounted commission of 0.6% annually, for working capital loans of up to 48 months.
Source: Ambito
