Fides reports via Los Tiempos:
Banking Tax is criticized
The executive secretary of the Association of Private Banks of Bolivia (Asoban), Nelson Villalobos, assured that the increase in the additional aliquot of the Corporate Income Tax (IUE) of the financial sector will affect the issue of credits to the public, because it will prevent the expansion of profits and reinvestment of capital.
Villalobos told Fides that the regulatory capital that a bank must guarantee by “risk-weighted assets” should be 10 percent of the credit issued; that is, for every 100 bolivianos of capital, 1,000 bolivianos can be lent.
He said that at lower profits to recapitalize, banks will have to decrease their ability to issue credits to the public.
“To higher tax burdens, lower profits for reinvestment and capitalization of companies,” he said.
As it could be expected from a true Ochlocracy, the ruling political party, demagogue and inept is only concerned with staying in power, no matter the cost, and of course, they need money to keep giving the impression that we have a stable economy …