Permanent tax on large fortunes | The gov …

“For the redistribution of wealth in Bolivia we adopt the Large Fortunes Tax Law, which will be applied to those with assets of more than 30 million bolivianos. The tax will barely reach 152 people. The benefit will reach thousands of Bolivian families. “In this way he communicated Luis Arce, President of Bolivia, the promulgation of the standard that Congress had voted a week before. he the tax will be annual and permanent for residents of Bolivia, including foreigners, with assets, deposits and values ​​that have in the country and abroad greater than $ 4.3 million as of December 31, 2020.

The standard establishes a variable tribute with aliquots lower than those applied in the ad hoc contribution of millionaires in Argentina (between 2 and 3.5% depending on wealth). The Bolivian state will charge 1.4% for people with a wealth between 30 and 40 million Bolivianos (from 4.3 to 5.7 million dollars), 1.9% for those with a wealth between 40 and 50 million (from $ 5.7 million to $ 7.2 million) and 2.4 percent for larger fortunes. It aims to establish a progressive tax system in which “those who have more pay more and those who have less pay less,” Arce explained.

One of the things the executive took away from taxed future millionaires was to respect the character confidential. The Bolivian Ministry of Economy estimated that about 110 million bolivianos, over $ 14.5 million.

During the same day, Arce also promulgated the General finance law State 2021, which projects economic growth of 4.8%, and the Cash VAT refund scheme, a law that provides for the refund of 5% of the value added tax (VAT) to all taxpayers who earn less than $ 1,293 per month. During the act by which he communicated the signatures, he stressed that the three laws aim to “consolidate our economic, social, community and productive model, on the one hand; and contribute to the dismantling of the neoliberal model which has been tried for eleven months in our country”.

The project promoted by the new president is part of one of his more immediate election promises: deliver state aid to more than a third of the population (the hunger voucher), introduce a tax on large fortunes and launch the investigation and repression of the alleged repressive crimes of the interim government of Jeanine Áñez.

In this way, Bolivia becomes the second Latin American country (after Argentina) to sanction this contribution. Among the extraordinary proposals under discussion, those from Brazil, Peru, Chile and Ecuador stand out. In Brazil four bills are presented to the Senate; one of the opponents proposes to pay an aliquot of 2.5 per cent to assets over 50 million reais. In Peru A party in Congress proposed that natural and legal persons who bill more than a million soles per year pay a solidarity tax of 1% and that it be increased to 3% when they alone exceed 50 million. In Chile MP Camila Vallejo will present to Congress a proposal from the Communist Party. It will consist of a wealth tax intended for the richest 1% of the country, with an annual rate of 2%, which will be charged until the distribution of wealth, measured by the Gini, is 0.25 , given that They estimate that 1% of the population concentrates 30% of the wealth. In Ecuador the sector aligned with Rafael Correa is pushing the initiative, although in this country the only person who has the legislative power to define tax matters is the president, in this case Lenín Moreno.

On the other side of the Atlantic, there is also a multiplicity of projects in different countries and at least three that charge a tribute. Germany collects the “solidarity tax” which pays a surcharge of 5.5 percent to the largest assets; Spain levies a tax on large fortunes and France an “exceptional tax” with aliquots of between 3 and 4 per cent on assets over 250,000 euros.