Of the 74 wells explored from 2006 to date, none was successful, and a few days ago the Azero Block with the Ñancahuazú well added to the list of failures. To attract oil companies, they suggest approving norms following the current context, providing incentives and modifying the contract regime, among others.
The Government determined the abrogation of Supreme Decrees 4139 and 4181, which allegedly put Bolivia's food security at risk. According to the Minister of Economy, Marcelo Montenegro, both norms threatened the food security of the Bolivian population.
The government claims that the six repealed decrees caused a fiscal deficit that would reach Bs 593 million ($85 mn); businessmen claim that cutting exports will cause further crisis and harm small producers.
The national government took steps that allowed for an increase in income and issued Supreme Decree No. 4413, which provides for a rise of 1.79% in the payment of the Distribution System, a percentage determined according to the variation of the Housing Promotion Unit 2018-2019. Also, an extraordinary increase of 1.59% approved totalling rate of the rise in the income of the Distribution System to 3.3%.
The tax on large fortunes currently being debated in the Legislative Assembly will also attempt to tax Bolivian goods and capital outside the country. Paragraph A of the third article of the bill indicates that natural persons residing in the Plurinational State of Bolivia with fortunes located in the national territory and abroad are liable to this tax. It implies that persons with a patrimony greater than Bs 30,000,0000 ($4.3 mn) must declare their assets, deposits and securities abroad and if they do not dot, so they risk a fine amounting to 200% of the amount evaded.
The Treasury will allocate Bs 2,591 million ($371.7 mn) to cover the payment of the Christmas bonus, an obligation that must fulfil until the 21st of this month. To date, the Treasury has disbursed Bs 518.2 million ($74.3 mn) for the income sector of the Contribution Sharing and Compensation System. Bs 952 million ($136.58 mn) also disbursed for entities at the central level of the State.