In an interview with 920 AM, the Deputy Minister of Financial Administration explained that all the measures that are being discussed in Parliament, such as the one that proposes the extension of VAT deductibility, the elimination of the Selective Consumption Tax (ISC) and also of VAT on food in the basic family basket, would end up leaving several vulnerable sectors without financing.
“Let us remember that most of the social sectors, as well as the sensitive expenses of the State, are financed with Treasury Resources, and all these measures would have a global impact of nearly USD 400 million, if approved”, he mentioned.
To give an idea of the impact, the Deputy Minister of Finance mentioned that the Program for Older Adults in a situation of vulnerability amounts to USD 250 million, an amount to which is added some USD 500 million in interest on the debt, in addition to the salaries in the different sectors, which contemplate a similar figure.
Elizeche also argued that the approval of bills such as the one that proposes the elimination of VAT on food will not necessarily have a favorable impact on people’s pockets. “If we eliminate the 5% for bread, yerba mate, sugar or milk, it does not mean that these products will register a reduction in their prices tomorrow.”
In his opinion, there is no guarantee that companies will not absorb that 5% and leave it to the people, so the scenario remains very uncertain.
The entrance Treasury warns that bills under study may leave the Treasury “without margin” was first published in diary TODAY.
