Tax delays amount to Bs 41 billion ($5.89 bn); due to debts, fines and penalties that taxpayers have had for several decades. This Sunday, the Minister of Economy and Finance announced that the Government is preparing a law to forgive the various tax debts of companies with the National Tax Service (SIN). The approval of this law has been in the hands of the Legislative Assembly for 35 days.
The deferral of the payment of the Corporate Income Tax (IUE) allowed generating liquidity of Bs 5 billion ($718mn) to the service sector companies operating in the country and facing the quarantine, in the month of April. However, the funds shall be paid out next month.
The International Monetary Fund projected a drop in the economic growth of 3.4% and the World Bank of 2.9%. The IMF forecasts that this year unemployment will reach 8% of the population, and considers that in 2021 the rate will return to 4%, according to the World Economic Outlook report published last Tuesday. The inflation rate will be 2.3% this year and 4.4% in 2021. The World Bank, for its part, projects a fiscal deficit of 8% this year, 5.6% in 2021, and 3.6% in 2022. Public debt as a percentage of Gross Domestic Product (GDP) will reach 69.2% in 2020, in 2021 will be 70.1% and in 2022 will fall to 69.5%.
A recent study of the Hotel and Tourism Management career of Franz Tamayo University reports that tourism in Bolivia will lose around Bs 6.2 billion this year. ($891 mn). The receptive national tourism, the visitors that come from other countries to tour the main destinations in Bolivia, has projected a fall of more than $us 360 million. Meanwhile, domestic economies will lose more than Bs 3.6 billion ($517 million) to domestic tourism by 2020.
The IMF approved Bolivia's request for emergency financial assistance of approximately US$327 million under the Rapid Financing Facility to combat the COVID-19 pandemic. This assistance will help Bolivia with urgent medical needs and support measures to preserve social protection expenditures. Additional support from other development partners will also be critical to help address Bolivia's fiscal and balance of payments needs.
In the first two months of this year, the export price of fossil fuel fell by 28.7% compared to the same period in 2019. Volumes marketed increased by 77.7%, but the sales value grew by only 26.6%. In short, more was sold but at a lower price. In the period analyzed, based on official information from the National Institute of Statistics (INE), the average cost per metric ton (MT) of LPG decreased from $404.8 to $288.4.