First 'round' of the tax: winners, losers and what was approved

What changes does the tax reform have for the second debate

The Ministry of Finance and Public Credit presented to Congress a report for the start of the presentation for the second debate in the Tax Reform Congresswhich on October 6, 2022 had its first debate.

(Tax Reform enters the final stretch in Congress).

Almost a month later, the Ministry of Finance published the general conclusions and the progress of the initiative before the project that seeks to raise 20 billion pesos by 2023, about 5 billion pesos less than initially expected, go to plenary for the second time.

The new debate in the plenary sessions of the Chamber and Senate would begin this Wednesday and could last for several days in the event that the congressmen decide to vote article by article, as some benches have proposed.

The report indicates that the initiative to tax ultra-processed foods and beverages is maintained, although there were modifications in some products, which would be taxed with a gradual rate of 10 percent in 2023, 15 percent in 2024 and 20 percent in 2025.

From the initial proposal on August 8 to today, some issues were left out of the debate, such as the celebration of VAT-free days, the elimination of border gasoline subsidies, the tax on oil, coal and gold exports. or taxes on some foods such as salami.

(Tax: the new alert due to the effects of the project on hydrocarbons).

Since the project was conceived, the foundations of the reform were laid, such as the higher taxation of individuals with higher incomes, the elimination of special treatment for companies and taxes on companies in the hydrocarbon sector, but in the last three months there have been several changes to the project.

In the latest news about the tax are the changes announced since last week, among which the modification to the surcharge for companies in the hydrocarbon sector stands out, which will be set depending on the international price when it is above the average price of the last 20 years.

In addition to this surcharge, the project also includes a surcharge of 3 percentage points for hydroelectric plants, and a rate of 5 additional percentage points in the case of financial institutions, with which the rate paid by the sector would remain at 40%, and It would apply for five years.

At Monday’s meeting it was decided that 3% of the surtax to financial entities would go specifically for the highways of the country’s tertiary road network.

In the case of occasional winnings, whose current rate is 10 percent, it was agreed that the tax would increase to 15 percent, except for lotteries, which remained at 35 percent.

(Tax: recommended adjustments for mining-energy contributions).

Regarding heritage, The proposal is that it would be as follows: from 3,000 million, with a marginal rate of 0.5 percent; from 5,000 million, 1 percent, and from 10,000 million pesos, 1.5 percent.

Another of the controversial points during these months of debate has been that of the dividends, which were finally left with a rate that will range between 0 and 20 percent.


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