2005News

Proposal heats up tax debate

The president of the National Council of Private Business (CONEP), Elena Viyella de Paliza, voiced yet another variant for the tax reform proposal. According to Viyella de Paliza, the proposed 1.5% tax should be applied to net sales, not gross sales – as proposed by the Executive Branch yesterday. At yesterday’s session of the Chamber of Deputies and the Finance Commission the tax reform proposal was tabled and left for further discussion and a possible slot in today’s agenda. The surprise move by the government, that requested a 1.5% tax on anticipated gross sales met with heated discussion yesterday. Alfredo Pacheco, the Chamber president, suggested that the entire process of debate over the tax package be tabled, and this was approved by the deputies. According to reports from the Chamber, the deputies need to study the effects of such a proposal on the small and medium business community before they can approve such a measure.