Implementing Personalized VAT: Frente Amplio’s Strategy to Balance Taxes

• Alejandro Sánchez discussed the differential VAT payment as a way to balance taxes without increasing tax pressure
• The Broad Front plans to implement personalized VAT starting March 2025
• Personalized VAT aims to adjust tax based on individual financial capacity, using current technology
• Examples from other countries show that personalized VAT can effectively reflect contributive capacity
• Tourists in Uruguay will benefit from zero VAT on various items
• The VAT collection in Uruguay grew by 2.3% year-on-year in October due to increased consumption
• Sánchez highlighted the issue of subsidized goods like supergas being used unequally by different income groups
• The upcoming government will focus on balancing tax burdens and addressing tax evasion issues
• Electronic billing and dynamic controls by the Tax Administration could help reduce tax evasion
• Criticism from Sebastián Da Silva suggests the Broad Front exaggerates in its examples and narratives

Source: ambito.com

Note that this post was (partially) written with the help of AI. It is always useful to review the original source material, and where needed to obtain (local) advice from a specialist.

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