On Thursday, during the debate on the draft Law on Palliative and Relevant Fiscal Measures sent to Congress by the ruling party, opposition blocs pressured the Government to make changes related to the update of the Income Tax. They highlighted the need to cut tax expenditures, such as eliminating the exemption of judges from paying Profits, and modifying internal taxes such as tobacco. The tax package includes eight sections with changes in Profits, Monotribute, Personal property, money laundering, and other reforms.
The proposal aims to be a complement to the Base Law, and the ruling party hopes to have both initiatives approved in May to submit them to the Senate for sanctioning. The Government is confident that inflation will slow down in the coming weeks and confirmed that the update of the Income Tax will be annual. Despite some legislators requesting a quarterly update, the ruling party plans to adjust it annually by the Consumer Price Index (CPI).
During the meeting, various legislators raised questions and made requests regarding the tax reforms. There were discussions about the non-taxable minimum for different categories, the annual update of Profits, and the elimination of the tobacco tax. The Government responded to these inquiries and defended its position on the tax updates and expenses.
Furthermore, changes to the Personal Property Tax and the Monotax system were also discussed, including modifications to the billing and quota ceilings. The Asset Regularization Regime for money laundering was highlighted, allowing for laundering up to US$ 100,000 without penalty. Overall, the tax reforms aim to create a more equitable tax culture and improve fiscal transparency.
Legislators from various parties, including PRO, UCR, and Victory Front, raised concerns and made suggestions during the debate. The Government emphasized the need for a different tax approach that ensures equal rights and obligations for all taxpayers. The reforms seek to eliminate tax spending as a way to hide the beneficiaries of State resources and promote transparency in budget allocations.