At the end of the year, the Government reported that it had surpassed its own tax collection goals. Revenues reported by the Treasury were US$252.7 million above the projections for the national budget.

There are four conditions that favor these results: the Anti-evasion Plan, the modernization of the State, economic growth and greater taxpayer confidence in the work of the institutions.

This can be observed when comparing the participation of the two main taxes that contribute to the total: VAT, which is indirect and applied to consumption; Income Tax (ISR), which is direct and withheld according to the economic capacity of each taxpayer.

The VAT left US$3,023.6 million, a variation of 8.4% with respect to 2021, but lower than the budgeted goal. One of the explanations is that, due to measures to face global inflation, the Government reduced the proportion of VAT in the purchase of some goods.

As for the ISR, at the end of the year it generated US$2,782 million, which represents a growth of 25% with respect to the 2021 total and 9% above the budgeted target. Of this amount, US$1,918.4 million was contributed by withholdings and payment on account, which are related to productive activities.

This improved level of income was reflected in more infrastructure for public health, connectivity and tourism support works, disaster prevention and protection, school renovation, training of professionals to care for early childhood and their families, among others. In fact, according to the Banco Central de Reserva, the Government executed US$1,756 million in investment during 2022.

Translated by: A.M