The book presented by the Milenio Foundation, entitled “Modernización y simplificación del sistema tributario” (Modernization and Simplification of the Tax System), presents an analysis of the weaknesses of the Bolivian tax administration and proposes a set of possible reforms that could improve tax auditing in the country.
1. Proposed measures
The foundation proposes the creation of an Individual Income Tax and the merger of the National Tax Service with Customs to modernize and simplify the tax system.
This tax seeks to tax all income of individuals, whether it comes from work, capital, or wealth (rents, presumed yield of antique loans, dividends on shares, interest on savings), or whether it comes dependent or independently from the remuneration of individuals. The generalization of income tax on individual income.
This tax would be levied on all individuals, but those with income below three national minimum salaries per month, i.e., those earning less than 6,492 bolivianos/month.
2. Advantages displayed
The group states that the main advantage would be to broaden the country’s tax base and reduce tax evasion, constituting a more equitable and fair tax since it would be based on the real economic capacity of individuals, unlike other indirect taxes or taxes on consumption.
3. Merger of National Tax Service and Customs
The book also proposes to promote an institutional reengineering of the tax administration, integrating the National Tax Service with Customs, forming a single agency, simplifying the procedures, and making them cheaper.
On the other hand, this integration would be the basis for the reengineering of tax and customs services, which would result in adequate governance and state management, with good management, supervision, and efficient coordination mechanisms.
Source: Página Siete 03/08/21