Weekly Report - 06 September 2012 (WR-12-35)

URUGUAY| Tax take on the up. According to Uruguay’s tax authority (DGI), the overall tax take for July was 5.5% higher than in the same period last year. According to DGI data, in the first seven months of the year total tax collection was US$5.2bn, 4.9% more than in the same period last year. The DGI said the increase was the result of significant increases in the collection of valued added tax (VAT), which increased by 9.1%; corporate income tax, which rose by 9.9%; and the tax on agricultural goods, which increased by 9.3%. Meanwhile, the change in collection on the personal income tax (IRPF), and on the so-called specific internal tax (Imesi) – which is levied on the initial sale of certain products an imports in the Uruguayan market similar to an excise tax- has been almost zero. This was a surprise given that in July the government announced that it was increasing the Imesi rate for new cars to 15% in order to fund the recently introduced single national vehicle register system. The measure is scheduled to go into effect in October and local economists forecast that it would prompt an increase in new car sales over July-September. Yet a constant Imesi collection suggests that this has yet to take place.

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