Monday, 07 November 2022 20:25

Congressmen issue favorable opinion to reform the General Tax Law

Written by Evelyn Alas

The deputies of the Municipal Affairs Committee approved a favorable opinion to make 45 amendments to the General Tax Law, with the purpose of improving tax collection in the 262 municipalities of the country. This money will subsequently be invested in works that will benefit the population.

The changes to the regulations are related to the updating of the penalties applied to companies that fail to comply with municipal regulations and evade the payment of taxes; the incorporation of new tax concepts and the homologation of the current law with the Administrative Procedures Law.

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Likewise, the parliamentarians explained that the amendments to the regulation will establish a fair and orderly collection in the municipalities and the taxes will respond to the economic reality of the country. 

They said that the amendments will define the actions that can be taken in the municipalities to collect taxes.

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In this regard, the reforms have contemplated sanctions for companies that do not comply with municipal regulations and evade payment of taxes, practices that prevent the municipalities from generating development in the communities.

Administración tributaria y gestión de las finanzas públicas

The working group clarified that no new taxes will be created, but that the municipalities will be provided with legal tools to increase the collection of taxes, which will allow more economic fluidity for the execution of municipal projects.