Senate Passes Tax Reform and Executive Announces Measures to Mitigate Over-indebtedness
17 enero 2020

On January 15,  the Senate concluded the voting session on the tax modernization bill with modifications, meaning that it must now return to the Chamber of Deputies to continue its legislative process. In addition, Minister of Economy Lucas Palacios announced that the Government is working on a series of measures to help mitigate people’s personal debt levels including a bill which will be sent to Congress to implement a financial information system for people access complete information about their debts in the credit systems.

After several hours of debate, senators approved the bill amending the tax legislation. Senator Francisco Chahuán (Renovación Nacional –– ruling party) said: “We have reached a great agreement, but we must find new formulas to be able to cover the legitimate social demands raised.”

The bill must now return to the Chamber of Deputies for their input regarding the changes introduced in the Senate, including the idea of levying VAT on digital services.

The Minister of Economy also announced that the Government is working on a series of short and long-term measures to mitigate the country’s debt level as part of a financial inclusion strategy in order to support credit decisions and their implications. The Executive is expected to launch a campaign on this issue next week.

In parallel, the Government is making the final adjustments to present a bill creating a consolidated debt system, so that people can access their credit information in a clear and simple way, to help prevent them becoming over-indebted.

The Minister said the goal behind this initiative is for people to “really know how much they owe, to whom, and what level of monthly payments they have to make.”