The International Monetary Fund urged the government to cancel the law
that removes taxes for small businesses, since it damages the
government’s strategy for consolidation of public finances.
The IMF congratulates the government’s will to keep the deficit and loan under control, but they note that it was possible not because of higher revenues, but by cutting investment spending.
IMF say that the revenue collection was lower than the expectations for 2015, due to some administration problems. The government started a huge anti-informality campaign in September, but IMF prefers a conservatory stance on the expected results.
“Revenue growth will be limited and difficult to be estimated”, the IMF report says, adding that most of the newly registered businesses are micro-enterprises that have limited impact in tax revenues.
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