Fiscal Council: Opportunity for tax incentives

The Fiscal Council has expressed reservations regarding the adequacy of the tax reform, arguing that it lacks the breadth to be considered a real reform. In a note, the Council stated that the reform is perhaps a missed opportunity to introduce tax incentives and disincentives that are consistent with long-term goals and priorities.

The Fiscal Council emphasized the need to present scenario analyses in Parliament regarding the potential impacts of the reform, as well as the impacts of any amendments by Parliament. It also stressed that increasing the corporate tax alone is not enough to bring the expected results and must be accompanied by complementary actions.

The Council acknowledged that increasing the corporate tax to 15% is an adaptation to international developments and contributes to improving the country's image abroad. Finally, it stressed that strengthening foreign direct investment is crucial for the success of the reform.