Tax on Large Fortunes exceeded collection expectations

August 11, 2021

On August 8, 2021, the website published a report on the collection of the tax on large fortunes, which has been positive during the last few months.

1. Collection amount – Tax on large fortunes

It was commented in the above-mentioned newspaper that the President of the State, Luis Arce Catacora, highlighted the collection of Bs 240 million for the Impuesto a las Grandes Fortunas – IGF (Tax on Great Fortunes) until April 2021, showing the progress in the redistribution of wealth to benefit the majority. The President commented:

“The collection of the Tax on Large Fortunes exceeded our expectations. Up to April, Bs. 240 million were collected, paid by 204 taxpayers. The redistributive policies of our Government benefit the great majorities”.

2. Number of contributors

The IGF had 204 taxpayers up to April. It should be recalled that the Ministry of Economy and Public Finance projected to collect around Bs 100 million with the IGF. However, this goal exceeded Bs 140 million more.

3. Taxpayer registry

According to the Servicio de Impuestos Nacionales – SIN (National Tax Service), up to last May 31, 206 persons were registered for the IGF, living 200 of these in Bolivia and six abroad, within the framework of the law enacted to pay this type of tax.

4. Economic growth

Thus, up to April 2021, Bs 240,143,432 was collected, representing a growth of almost 140.10%, so much more than the amount expected.

5. Tax on large fortunes

The Large Fortunes Tax Law is aimed at two types of people: those who live in Bolivia and have a net worth of more than Bs 30 million and those who live abroad and have a net worth of more than this amount in the country.

Source: Eju 10/08/21