The president Juan Carlos Varela, puts a partial veto to the Law project n. 609 that modifies the articles of the Tax Code and the Law 66 regarding property taxes.
This initiative granted a moratorium until 31st October 2018, and could be extended until 31st December 2018, as long as the tax payer has already started the exemption procedure for improvements with the National Administration of Land Authorities or the General Revenue Management.
According to the report, articles 2 and 5 have been objected because the duration of the moratorium was not determined in the payment of the single tax of anonymous companies, private interest foundations, the payment of social security employee fees and independent professionals who declare rent, which could be interpreted to be repealing the existence of the tax. According to the document, this prevents the Treasury from collecting tax, fines and surcharges and based on the article 276 of the Constitution of the Republic, explained in the veto, the National Assembly cannot issue laws that revoke or modify those that establish revenues included in the budget, without at the same time establishing alternative income.
The president explained that the project did not satisfied the requirements of that article of the constitution and therefore had to be partially vetoed.