The government’s Accountability project, which has already been approved in the Chamber of Deputies, includes an article that replaces numeral 9) of article 1 of Title 11 of the 1996 Ordered Text, by which they are taxed with the Specific Internal Tax (IMESI), tobacco, cigars, cigarettes and products for similar use, to which are added other products for similar use, prepared totally or in part using tobacco leaves as raw material and intended to be smoked, inhaled, sucked, chewed or used as snuff, as well as other products for recreational use determined by the Executive Power prepared totally or in part using synthetic nicotine, at 70%. They are also included in this number, “the accessories and devices that are used for the consumption of smoked, inhaled, sucked, chewed tobacco or used as snuff, such as: blades, filters, mouthpieces, pipes, water pipes, electronic devices for heating tobacco”.
It also empowers the Executive Branch to “increase this rate up to a maximum of 72% as it establishes the validity of the derogations provided in article 45 of Decree-Law No. 14,948 of 1979; and to set differential rates for tobacco manufactured for consumption in land border departments”.
substitute
However, in the last hours, official senators presented before the Budget Commission integrated with the Treasury, a substitute for said article by which they eliminate from the original wording and, therefore, from the tax, other products for recreational use determined by the Power. Executive prepared wholly or in part using synthetic nicotine, accessories and devices used for the consumption of tobacco smoked, inhaled, sucked, chewed or used as snuff, such as: blades, filters, mouthpieces, pipes, water pipes, electronic devices to heat tobacco.
The authority for the Executive Power to increase said rate up to a maximum of 72% is maintained; and to set differential rates for tobacco manufactured for consumption in land border departments.
In December 2021, the Executive Power, through President Luis Lacalle Pou and the Ministry of Economy, had already sent a bill to Parliament with the same wording of the substitute presented by the white legislators.
