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The president of Bolivia, Luis Arce, promulgated on Monday (28) a tax on fortunes of more than 30 million Bolivians, or $ 4.3 million, which will reach 152 people.
Arce, in power since November, announced on Twitter that, “for the redistribution of wealth in Bolivia, we have enacted the Great Fortune Tax Law 1357, which will be applied to those with assets of more than 30 million bolivianos.” noting that “the benefit will reach thousands of Bolivian families.”
The president signed the regulation, approved in recent days by Congress, controlled by the ruling Movement for Socialism (MAS) by a large majority. The law establishes gradual percentages for the payment of the rate: 1.4% for people with wealth of 30 million to 40 million Bolivians; 1.9%, from 40 million to 50 million; and 2.4% for larger fortunes.
The tax will be annual and permanent for all residents of Bolivia, including foreigners. The measure applies to individuals residing in the country who have stayed in Bolivia for more than 183 days in the last 12 months.
The Minister of Economy, Marcelo Montenegro, explained that “the current rates are within the average of the parameters of other economies in the region that apply a similar tax, and confidentiality is maintained regarding the affected persons.”
The economic authority previously estimated that around 100 million Bolivians would be raised under the new standard. Opposition parties and businessmen commented on the tax, which they saw as a disincentive to investment.
