Uruguayan Tax Authorities ask for tax reductions

September 14, 2021

According to Infobae, Uruguayan mayors are asking for price and tax reductions on purchases due to the fear that a flood in Argentina will cause local businesses to close.

According to the article, there are three departments in Uruguay worried about the reopening of borders. They are on the west coast, bordering Argentina. Those three are Salto, Paysandú, and Río Negro.

Likewise, Andrés Lima, Mayor of Salto, pointed out that “the concern we all have in the region is because it had happened before, hurting the whole region then. To the extent there is a massive displacement of Uruguayans to Argentina, it will cause businesses to close”.

To prevent this, the mayors (Andrés Lima of Salto, Nicolás Olivera of Paysandú, and Omar Lafluf of Río Negro) informed La Daría to present to the Presidency a set of measures to apply prior to the opening of the bridges.

The first measure

It would be the creation of “border prices”, considering the products of the basic household basket. It would involve taking care of the prices of the three departments in this type of product through discounts added due to taxes corresponding to the IMESI (Impuesto Específico Interno – Internal Specific Tax).

The second measure

It would be the VAT discount. This is an indirect tax levied on the final domestic consumption of products and services at a rate of around 22%. The measure would not imply charging VAT when purchases are made with credit or debit cards.

The third measure

Also related to VAT, but regarding lodging and gastronomic ventures to promote local tourism in the coast.

All these measures already proposed to some degree in Uruguay in similar contexts have similar purposes: to encourage consumption in the country.

Finally, it is noted that the measures respond to a concern for commercial activity that may fall into depreciation, considering the effects the pandemic has already had on them.

Source: Infobae 09/09/21