The Citizens section of the Colorado Party, presented a document to the President of the Republic, Lacalle Pou. There, a series of points are recorded to mitigate the increase in prices in our country. Diario La R was able to access it based on sources, it indicates that the conflict between Russia and Ukraine places our country in a place of economic uncertainty. He adds that it generated a series of “imbalances” in terms of energy and food.
It also states that “the local economy” showed “important signs of recovery and growth, the sustained increase in employment being a special indicator of this.” Despite this, “the rise in inflation” is viewed with great concern. A consequence of “this exogenous situation damages the purchasing power of citizens and especially of the most vulnerable.”
Citizens’ proposal
One of the proposals of the sector is the “Increase in allocation of TUS and BPS Benefits”. As a justification for this, it is alleged that the “most vulnerable population in our country is the one who suffers the most from the consequences of price increases.” It states that it “lacks the ability to react immediately to mitigate it.” He continued expressing that said sector; receives “allocations through Tu Uruguay Social (TUS) and BPS Prestaciones cards”, which have “the benefit of VAT refund (Art. 88 Title 10 TO 1996), so they will not benefit from the proposed VAT exemption by the Executive Power (PE)».
Likewise, the proposal is to increase the allocations of TUS and BPS, “benefits immediately in an amount equivalent to the increase in the prices of the products of the basic basket. Although the detailed information for the definition of the adjustment must arise from the purchases made with said cards in the same period of the previous year, a minimum adjustment of 20% is proposed.
Another of the measures that the Colorado sector wields to the president is «the reduction of VAT on products of the basic basket. At this point, it is explained that “The EP has sent its proposal to the Legislative Power (PL) regarding the exemption of certain baked goods, noodles and the like.” The period is “30 days” with the possibility of extension, says the document. To this is added the exemption “relative to the roast cut approved weeks ago. The measures have been approved by both Houses since they mark a very good intention of the EP to reduce the costs of the products of the basic basket.
Backup and extend
On the justification of the above, the text speaks of «expanding» the range of products with total reduction of VAT». The incursion of “oil, rice, flour, sugar and certain additional meat cuts” is taken as an example. The number of products “should be as wide as possible and the definition of the basket of products should have the opinion of the MSP to promote adequate and healthy eating. Regarding the VAT refund mechanism, the use of electronic means of payment is recommended.
