Uruguay Minister Rules Out Wealth Tax for Current Term

Uruguayan Minister of Economy and Finance Gabriel Oddone has definitively ruled out the implementation of a tax targeting the wealthiest 1% during the current government's term. Oddone made the statement during the presentation of a new law focused on competitiveness and reducing the cost of living.

“

We have said that this is not an initiative for this period of government, that the country has a set of constraints for which that is not a discussion for this period of government.

"This is not a discussion for this period of government. The country has a set of constraints for which this is not a discussion for this period of government," Oddone stated at a press conference. He clarified that while he is open to dialogue with various entities and the political system on different initiatives, the proposed wealth tax is not on the agenda for the current administration.

Earlier, Marcelo Abdala, president of the PIT-CNT union, had reiterated the union's proposal for a tax on the wealthiest to "accelerate" efforts to combat poverty, particularly in households with children and adolescents. Abdala expressed openness to alternative proposals from the executive branch if they can achieve the same goal.

“

We insist on the 1%, although we declare ourselves open to the Executive Branch proposing another way if there is one.

The new law on competitiveness and cost of living aims to promote price reductions and streamline the state through "a set of micro-reforms." According to Oddone, the project strictly targets competitiveness by creating a more favorable environment for Uruguayan businesses with fewer rigidities and lower costs. He described it as a "modest but important reform of the state," noting that the public sector places an "extraordinary burden" on companies and taxpayers. The objective is to make Uruguay a less costly country, where bureaucracy unnecessarily increases product prices.

“

This project strictly targets competitiveness. We have to generate a competitive environment for Uruguayan companies, with less rigidity and less cost.

Oddone highlighted that this reform, which has not been addressed since 1995, is central to the government's agenda. The bill is set to be presented to the legislature next week. Among other proposals, Abdala also urged Uruguay to advocate for a study on regional productive complementarity and equitable work distribution among Latin American countries through Mercosur, ALADI, and CELAC.

“

The public sector places an extraordinary burden on companies and taxpayers.