Increases in interest rates, pressures on the exchange rate and increases in domestic prices, especially influenced by increases in fuel prices, are expected in 2017.
All these factors could hinder not only the collection of taxes, but the government’s ability to finance at low cost.
Helio Fallas, vice president of the Republic and finance minister, is clear: in the absence of a fiscal reform, authorities will need to refine the strategy to manage public finances.
2017 is going to be a tougher year, no question about it, but we are getting ready in terms of revenue and expenses. The electronic invoice is coming, which is going to be vital, as well as the implementation of the anti-fraud law, which is an instrument we did not have,
informed the official.
At the end of 2015, the finance authorities asked legislators to make a calendar with tentative dates to approve the tax reform projects. This programming did not take place.
Despite this, Fallas believes that 2016 was not a lost year because the Executive was able to implement administrative measures that made the collection more efficient and allowed to reduce the gap between income and expenditure.