Extension of Tax Amnesty Deadline Proposed by 17 Deputies

As the first key date of the 2024 tax amnesty, April 30, has passed, a bill drafted by a group of 17 deputies has been submitted to the ARP (National Assembly) to extend the deadlines. The bill contains a single article proposing to postpone the deadline to October 31, 2024.

The deputies justified this initiative by citing the difficult economic context, which has worsened the situation of businesses struggling with increased operating costs, a gloomy outlook since the health crisis, and high tax pressure. Meanwhile, interest rates have made it challenging to mobilize financial resources. Household consumption remains sluggish, with a contraction in local trade volume, further exacerbating the crisis for businesses. As a result, they have been unable to take advantage of the amnesty, as regularization of accounts requires liquidity.

The deputies propose more realistic deadlines, emphasizing the effectiveness of this measure in combating the parallel economy. Businesses want to find an arrangement with the tax administration, but they are stuck with their high operating costs.

This initiative is expected to receive broad support within the ARP. The position of the Minister of Finance is unknown, as she was not very favorable to this amnesty from the start. We believe her opinion will depend on the figures observed so far. We think that high revenue collections, which meet expectations, will be a factor in favor of the bill. On the other hand, in the absence of concrete results, the ministry might opt to end this amnesty.

It is essential not to underestimate the risk of businesses delaying payment of their tax debts following the submission of this bill, which the ministry will want to avoid. This has direct consequences on the pace of its indebtedness in the local market.