Uruguay
The Congress of Mayors Calls for Compensation Before Eliminating the Livestock Tax
The delegation of departmental leaders took the proposal to the Senate and asked the Executive Branch for a definition of how to replace that revenue. It also addressed the situation of rural roads amid the possible impact of El Niño.
A delegation from the Congress of Mayors, led by its president and mayor of Florida, Carlos Enciso, appeared this Tuesday before the Senate Budget Committee, sitting with Finance. According to la diaria, although the hearing took place during consideration of the Accountability Bill, the mayors focused much of their presentation on two issues: the possible repeal of the livestock tax and rural roads in the face of the El Niño phenomenon.
On the latter point, Enciso said that President Yamandú Orsi committed to enabling, when the emergency requires it, resources from multilateral financial institutions amounting to $750 million to address the climate situation. He also noted that it is not possible to anticipate which areas of the country could feel the effects most strongly or what the impact will be, and he summarized that there will be permanent coordination among Sinae, the Congress of Mayors and the Executive Branch.
As for the 1% tax on the transfer of livestock, Enciso stressed that the key point for departmental governments is that the more than $40 million a year that, he said, are now part of municipal budgets must not be lost. He argued that the Ministry of Economy and Finance must specify how much the mayors will be compensated if that revenue disappears, so that the Congress of Mayors can then take a position on a replacement formula.
According to the stenographic record cited by la diaria, Enciso explained to lawmakers that at the time the Executive Branch considered three scenarios to replace the tax: one based on a historical criterion updated by an indicator of the price of cattle for slaughter, another linked to the relationship between revenue and the cattle herd, and a third based on the valuation of transactions through purchase and sale guides.
Enciso said that the proposals received from the MEF last Friday are still insufficient to move forward and warned that the projection of amounts will depend on the year in which the measure begins to apply and on the evolution of other variables. In that context, he said the issue must be resolved once and for all.
In statements to la diaria, National Party Senator Sergio Botana said that if the tax is eliminated, the mayors cannot be made to lose resources. From the governing coalition, Senator Daniel Borbonet told that outlet that the proposal is on track toward a solution and estimated that a definitive outcome could be known in the coming days.
Sources
Sobre esta nota. Written by El Notero with assistance from artificial intelligence, based on what was published by the cited outlet. El Notero did not conduct its own reporting on this event.
