Latinnews Daily - 28 August 2003

The jostling over the government's fiscal reform proposals has already started, even though congress does not convene until next Monday. Luis Pazos, the former deputy who is now the finance ministry's spokesman, is taking a tough line. He issued a warning that if the reform failed the government would have to resort to raising taxes by decree which could be overturned by the courts. What Pazos wants is for Vat rates to be lowered from 15% to 10%, and for Vat to be extended to food and medicine.