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VAT collection rose in May, but does not offset the 16% drop in five months
Posted On 05 Jul 2016
A timid 4,11% was the advancement of the VAT tax revenue in May compared to April. In the first five months the Internal Revenue Service obtained $ 1,748.1 million for this consumption tax.
This increase does not compensate what was not collected last year, although it is a sign of the impact of the VAT hike from 12 to 14%.
It was feared that consumption would be sharply deteriorated by the increase of two VAT points through a legal reform intended for the reconstruction after the earthquake; but SRI figures indicate that the Treasury has received $ 12 million more than in April. It must be emphasized this month a sharp drop of 9.09% was recorded. So what was raised in May exceeds what was raised in April, but it is lower than what was raised in the other months of the year.
So those $ 1,748.1 million are equal to a sharp drop of 16.1% compared to the VAT revenues from January to April 2015. And in addition, the 315.6 million raised in May are 9.4% lower than the total raised in May last year.
