President Luis Lacalle Pou meets this Tuesday with the Minister of Economy and Finance, lily arbelecheto adjust the details of the reduction of the Personal Income Tax (personal income tax) and the Social Security Assistance Tax (IASS), which would be announced in March.
The announcement of the reduction in taxes is expected by the population and by the political sectors, since it would mean a relief in the tax burden of taxpayers. In this sense, the president announced that if the economic growth of 2022 exceeded 3.8% of the Gross Domestic Product (GDP), the reduction would take effect.
According to preliminary figures presented by Minister Arbeleche last week, the economy would have grown close to 5%, which could confirm the reduction announced by the president.
The reductions, if there are any, will be announced by the president on March 2 in his annual message to Parliament.
The annual message before Parliament It is an instance in which the president is accountable for the management of the government and presents the goals and objectives to be fulfilled during the year. In addition, it is expected that the president will take advantage of the occasion to address other issues of national importance, such as the situation of the pandemic, the economy and security.
The long-awaited reduction of IRPF and IASS
In this sense, the partners of the government coalition, especially from Town meetinghave expressed their interest in addressing some points that they have put on the table, such as the project for the debt restructuring of individuals.
The day of March 2 will also be an opportunity for the National Party to express its defense of the government at a time when the political debate is focused on the cross accusations in the case of Alejandro Astesiano. The latter was the head of Lacalle Pou’s custody until he was arrested – and now convicted of at least four crimes (read all about the Astesiano case here). Although there will be no formal call by the party, some militants are expected to spontaneously approach Parliament to show their support for the government.
A promise to reduce the IRPF and the IASS with a year of delay
Lacalle Pou, had announced last year that his government would reduce the Social Security Assistance Tax (IASS) that affects the highest pensioners, as well as the Personal Income Tax (IRPF) that affects a third of wage earners, as long as the country’s economy continues to “improve”.
During his speech at the 2022 General Assembly, on the occasion of the second anniversary of his government, the president stated that the government’s commitment is to comply with what was agreed in the Commitment to the country, the fantasy title that his government plan bore.
