Tax Reform Debate: Ruling Party Unveils Palliative and Fiscal Measures Amidst Controversy

The ruling party presented a draft law on palliative and fiscal measures to Congress on Thursday, sparking heated debate over tax reforms. Opposition parties pressured the government to make changes related to the Income Tax, including cutting tax expenditures, eliminating exemptions for judges, and modifying internal taxes such as tobacco.

The proposed tax package includes sessions with changes in Profits, Monotribute, Personal property, and money laundering. The aim of the proposal is to complement the Base Law and will be debated simultaneously with other initiatives. The ruling party hopes to have both initiatives approved by May 1st to submit them to the Senate for sanctioning before May 25th.

During the debate, various legislators raised concerns about quarterly updates instead of annual ones for the Income Tax and questioned the elimination of tobacco taxes and tax expenses. The project also includes changes to personal property tax, money laundering asset regularization regime and updates to monotax regime for small taxpayers.

The Government emphasized that creating a different tax culture where everyone has the same obligations and rights in fiscal terms is essential. Legislators from all parties voiced their concerns and suggestions regarding transparency, fairness, and accountability in the tax system. The Government aims to address these issues while ensuring that the proposed tax changes benefit society as a whole.

Overall, Congress focused on discussing proposed tax reforms including updates to several taxes and measures aimed at simplifying the tax system.