The President of the Republic, Luis Lacalle Pou, informed that as of March 2, 2023, the reduction of the IRPF (Social Security Assistance Tax) and the IASS (Social Security Assistance Tax) will be announced. as it had announced in October of this year if the economy grew more than 3.8%.
“Now that the pandemic is over, the economic situation restored, with record exports, with growth in investment, with the presence of the State, and the attraction of private companies, On March 2 we are going to announce a reduction in two taxes: in the IASS and in the lower ranges of the IRPF“He assured this Monday at a press conference.
On that date, the president will present a bill to Parliament, which must approve the reduction.
“The optimism of a ruler must have sustainable, objective elements. If the world grows 2.6 or 2.9%% and we 5%, why is that? Because Uruguay generates sufficient stimuli and the great strength that is its people, which generates this attraction”. “We start from a base of 3% growth -which in Uruguayan terms, is not a small thing- we will see if we have the sufficient capacity to attract that money from the world that wants to invest in the long term”, he affirmed.
In Compromiso por el País, a document agreed by the political parties that make up the coalition in the last electoral campaign, mentions the IASS reduction”, Lacalle Pou had said in October 2022. At that time he mentioned a “pact” that he has with the Minister of Economy, lily arbeleche. “If (economic) growth exceeds 3.8% this year, part of that growth above the planned will be used to reduce the IASS and part to reduce income tax (Personal Income Tax)”, he stated.
A projection of the economic team carried out in February of this year indicated that the expansion of the Gross domestic product (GDP) would be 3.8% in 2022. The latest Rendering of Accounts improved the forecast to 4.8%. Meanwhile, most private analysts manage a growth floor for activity for this year of 5%.
