Deputies Finance Commission voted to reduce 50% VAT rate in border departments
Legislators approved a series of measures in order to mitigate the exchange difference in the border areas to Argentina and Brazil.
The Treasury Commission of the Chamber of Deputies met on Wednesday to vote the bill sent by the Executive Power that seeks to mitigate the exchange difference in the departments near the borders of Argentina and Brazil.
In this regard, the president of the commission, Julieta Sierra, pondered that the project “is a historical signal” of the Yamandú Orsi government in relation to the departments of the coast and north.
As deepened, the project “consists in generating a special regime, a simplified customs procedure for certain products, which benefits small and medium merchants.”
Specifically, there is “the exemption of retirement employer contributions to new jobs in 75%, which promotes formality in departments where labor informality is very high, to exonerate retirement employer contributions to new jobs in order to promote the generation of these quality and formal jobs,” according to the statement.
In addition, he considered as another measure “the Reduction of VAT (Value Tax) of many products and is also fundamental to be able to lower the costs for merchants sell them, and for citizenship.”
As clarified, the measure “does not operate for any transaction, but is scheduled for everyday purchases that people perform: operations that do not exceed the equivalent of the 2,000 indexed units (approximately $ 13,000) and a maximum monthly amount of the operations that can be carried out in the order of the 10,000 indexed units ($ 63,600)” is established.
Therefore, “it includes the purchases of certain merchandise in retail shops of general bouquets located less than twenty kilometers of a border step and will be implemented in the use of debit cards or electronic money instruments (with the same electronic means that today operates the discount of two points of the VAT, does not apply to purchases with credit cards).”
