Here We Go Again, New Plan Fiscal In The Works

The new ministro de Hacienda (Finance Minister), Edgar Ayales, revealed that the government has new a plan to drive home a new tax reform, which he says will be approved before the end of this administration.

The approval of the Transparencia Fiscal, the Fortalecimiento de la Gestión Tributaria and the Eurobonos (approved in first vote on Tuesday) the next step is a "Plan Fiscal", Ayales told Radio Reloj in an interview.

The minister said that the bills moving forward in the Legislature do not replace the tax plan, rather they will serve to sustain the rates for the coming months.

Ayales insists that a new tax plan should be part of this government's efforts and not be left to the next.

The administration suffered a blow earlier this year when its Plan Fiscal, a plan that included the replacement of the 13% sales tax on goods to a 14% value added tax on all goods and services - was killed and buried by the country's political machine.

In addition to the proposed taxing of services, the failed government proposal included taxing free trade zones, among other taxes.

The minister said in the interview that they are reviewing "all options" and that he will be making proposals for discussion to cabinet fellow cabinet members.