Repeal of Article 17 of the Public Finances Ordering Law
Congreso Nacional
- Decree: 2-2014
- Published: February 5, 2014
- Issuing body: Congreso Nacional
- Gazette: 33,347
- Category: Financial & Tax
- Type: Other
Summary
This decree cancels the reduction of products exempt from sales tax (ISV) that a previous law had made, to protect low-income families. It orders restoring the complete list of basic goods without tax and preventing price increases due to speculation.
Considerations
Whereas, through Decree No. 278-2013 of December 21, 2013, contained in the Law on the Ordering of Public Finances, Control of Exemptions and Anti-Evasion Measures in Article 17, Article 15 of the Sales Tax was reformed, reducing the list of goods exempt from the basic basket.
Whereas the application of Decree No. 278-2013 signifies an increase in tax collection but also the extraction of a portion of the available income of households and businesses.
Whereas likewise the application of Decree No. 278-2013 has significant consequences on the level of available income of persons through two (2) mechanisms: Reduction through the payment of higher taxes and an additional reduction by the inflationary effect of the measures.
Whereas the effect on the level of household income will result in a lower level of total consumption in the economy, and given that Honduras' tax system is generally regressive, it is most probable that the greater relative burden of the increase in taxes will fall on the lowest income strata of the population, for which reason it is necessary to maintain the list of goods exempt from the Sales Tax (ISV) prior to the reform of Article 17 of Decree No. 278-2013 referred to.
Whereas in order to benefit the majorities of lower income, it is necessary to repeal Article 17 of Decree No. 278-2018 relating to the Sales Tax on essential products of the basic basket, as well as to regulate its applicability and strengthen the protection and defense of consumers.
Amendments
- Modifies: Law on the Organization of Public Finance (Repeal) — articles 17
Articles
To repeal Article 17 of Decree No. 278-2013 dated December 21, 2013, containing the LAW ON THE ORDERING OF PUBLIC FINANCES, CONTROL OF EXEMPTIONS AND ANTI-EVASION MEASURES.
To order the Secretariat of State in the Offices of Industry and Commerce to, within a period of three (3) days in coordination with the Executive Revenue Authority (DEI), carry out the description within the Tariff Items, so that all essential articles of popular consumption are exempted.
To order the Secretariat of State in the Offices of Industry and Commerce to, within a period of three (3) days in coordination with the Consumer Ombudsman's Office and Consumer Associations, based on Decree No. 24-2008 of April 1, 2008, containing the Consumer Protection Law, carry out with urgent character the necessary measures for the defense of consumer interests, so that products return to their prices prior to the effective date of Decree No. 278-2013, and speculation is avoided and combated.
This Decree shall enter into force as of the day of its publication in the Official Gazette La Gaceta. Given in the city of Tegucigalpa, municipality of the Central District, in the Chamber of Sessions of the National Congress, on the twenty-ninth day of the month of January of two thousand fourteen. MAURICIO OLIVA HERRERA PRESIDENT MARIO ALONSO PÉREZ LÓPEZ SECRETARY ROMÁN VILLEDA AGUILAR SECRETARY To the Executive Power. Therefore: Execute It. Tegucigalpa, M.D.C., February 4, 2014. JUAN ORLANDO HERNÁNDEZ ALVARADO PRESIDENT OF THE REPUBLIC THE SECRETARY OF STATE IN THE OFFICE OF FINANCE. WILFREDO CERRATO RODRÍGUEZ
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- Law of Municipalities and Its General Regulations — This law organizes Honduran municipalities as independent autonomous entities, establishing how their municipal governments function, what powers they have, and how their authorities are elected. It defines citizens' rights and obligations, municipal administrative structure, and how municipalities can join together to solve common problems. (Decree 134-90, 1990)
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