Posted On 26 Nov 2015
The Corporation for Development Studies (Cordes for its Spanish acronym) doubts that revenue targets are met next year. And it bases its analysis on the October figures of the Internal Revenue Service (SRI).
Last month net revenues totaled $ 903.5 million, 14% less than the same month of 2014. This is the third consecutive interannual contraction and the sharpest so far this year.
Collections of the Income Tax (IR), which in June and July showed extraordinary growth thanks to the effectiveness of the Law for Remission of Interest, Fines and Taxes, have been registering since August, annual contractions. The October contraction (-12.3%) is the most pronounced.
According to Cordes, this fact, although it is explained in large part by the collapse of advances (34.2%), also responds largely to the fall of 8.8% in the monthly deductions, which are the main collection mechanism of the IR. “A lesser amount in monthly withholdings of the IR necessarily implies a contraction in the number of transactions, ie less purchases of goods and services or less deductions to employees in a dependent relationship (dismissals).”
VAT revenues, the main tax of the SRI in October fell 14.8% compared to the same month of 2014.