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Proposal to Halve VAT Raises Doubts About Its Impact on Public Finances
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The proposal by Congresswoman Claudia Ortiz to reduce the Value Added Tax (VAT) by half has opened a new debate on the country’s fiscal sustainability, with questions focused mainly on its economic viability. During an interview, Ortiz argued that VAT should be significantly reduced because, according to her argument, it is the poorest consumers who end up absorbing the tax in each purchase. The legislator said that, although formally the VAT do…
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