translated from Spanish: Tax reform: considerations to the contribution to the regions

These days, the Finance Minister said that it will be included – as part of the measures to enable the Reform Tax – a mechanism of interregional redistribution of resources, avoiding the concentration in the most attractive regions or with greater resources, thus putting at the Centre of the discussion, the form of distribution. The distribution that arises is one-third to the region, another third to the municipality where the project is carried out and a final third, to a common fund.
As explained in the press and by the Executive, 1% of the contribution (tribute) regional, will be about the investments of over US $ 10 million with 1% of these to the region and to the (s) commune (s) in which the projects are developed.
The first important consideration is to establish that we are in the presence of an additional tribute, which is considered as expenditure accepted to the income of the company. Complying with all the requirements of tribute, which is why the idea of do not call it does not understand special tribute for investment in the regions. This would be a collection of Corporate Social responsibility for the environmental impact to the place where investment projects are generated.
Second, is quite attractive which are subdivided the contributions earmarked for the region. In the first instance, the third to municipalities, are them and the citizens of the same people who will be hit hardest by investment projects, more if these investments damaged his town in some way, this contribution would then be compensated by the damage. As for the third to the region where the investment is made, it can be considered positive as major investments and projects not only damaged a commune. Finally, the third earmarked for a regional pool, waiting for this last Fund to be distributed to the regions with fewer resources and are the least attractive for investors, makes possible the idea that new resources are spent on durable goods) infrastructure) or in education or health, to not lose its aim to aid the growth of the country as a whole.
Third, the most important consideration is legislating so that these contributions are not obtained by regional governments or municipalities that offer environmental sacrifice zones. This point is more delicate, since, if this mechanism becomes popular to attract new resources to the regions, it can be a breeding ground for corruption, where may arise bad practices, so it is required to permanently monitor these new investments.
Last consideration, the third earmarked for the municipalities where the investment takes place corresponds to the most notorious and effective. In the first instance, breaks with the second centralism that is generated in our country: the centralization of resources in regional governments. Remember that soon they will democratically elect regional governors, and this can encourage change social investments that the resources obtained for other reasons, deferring to the own communities suffering from the impact of the investment. In addition, promotes autonomy of municipal decision, which may allocate these resources to mitigate the damage during and after make the investment. For example, own underground in the metropolitan region has caused great disorders during the development of the works, all these can be minimized and funded with resources obtained through this mechanism.
There is still much to wait. Still not approved the idea of legislating, and ideas on the table: how these resources will provide for three years, how are taxed and how will regulate the distribution of them.

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Original source in Spanish