Finance minister opposes real estate tax cut

IF A BILL calling for a reduction in real estate taxes is approved by the National Assembly the   Minister of Economy and Finance Dulcidio De La Guardia will ask President Juan Carlos Varela to veto it.

In a meeting with journalists on Wednesday October 14 he said the minister said that the bill aims to significantly reduce the income stream that was slated to fund the decentralization project.

“If we believe in democracy, we believe in decentralization. And without resources, the municipalities will not be able to address the problems in their communities,” he said.

De La Guardia said  that, according to the Constitution, a tax reduction must provide a replacement source of income so that the public coffers are not affected.

The bill was introduced by PRD Deputy Zulay Rodríguez and approved on first debate.

The proposal increases the amount exempted from the payment of real estate taxes and reduces all the rates. In 2014, the real estate tax generated $175.9 million.

De La Guardia said that existing rates are already among the lowest in Latin America.