While the country is debating the increase of value added tax (VAT) from 12% to 15%, the Tax Administration (SRI) has presented the tax collection balance sheet for the year 2023, and VAT is the one that reports the most revenue to the state with 8,444 million dollars. It generated more funds last year: 3.8%, although the income tax (PP) grew the fastest, while, on the contrary, the foreign exchange outflow tax (ISD) had a decrease.
Overall, according to the entity, tax collections in 2023 amounted to USD 17,420 million, which means an increase of 1.5% (USD 258 million) compared to 2022. In December alone, tax collections amounted to USD 1,400 million, which represents an additional 1, 6% compared to what was registered in 2022.
According to SRI data, 8,444 million dollars were collected from VAT, of which 687 million dollars corresponds to December. The growth of VAT collection in 2023 compared to 2022 was 3.8%.
With the Organic Law on Countering Internal Armed Conflicts, Social and Economic Crisis, which proposes a three-point increase in VAT, from 12% to 15%, the Government hopes to add $1.306 million annually for this tax if approved in the National assembly.
While the income tax generated collections of $5,818 million in 2023, representing a 9% increase over 2022. The Internal Revenue highlights the collection of this tax last December, in which $525 million was collected, or 19.5% more than in the same month of 2022, and that “this growth is partly due to the voluntary payment of income tax advances in the last month of 2023 (173 million dollars), which is a product of this administration’s efforts to help the fiscal fund.”
In late December, the economy minister, Juan Carlos Vega, said that given the low fiscal cash flow, he had to temporarily raise about $3,000 million to pay salaries and local governments through temporary measures. The emergency plan included the sale of Cetes’ bonds, advance payments of income taxes to the likes of Corporación La Favorita and other large companies, as well as the postponement of payments of billions to suppliers.
Other taxes
Source: Eluniverso
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