Submit to parliament a draft tax law on (i) strengthening the VAT by reducing the number of exemptions, (ii) gradually phasing out the sales tax; (iii) gradually limiting the use of the patent system; (iv) adopting a simplified recordkeeping and reporting requirements.
Introduced at R0. Macroeconomic rationale: Raise tax revenues while setting up more efficient tax policy. At R1, Partially Met. In August, the government submitted a draft law to parliament on strengthening the VAT by reducing the number of exemptions on processing food and agriculture products, and gradually phasing out the sales tax. Additionally, in June, the government issued a resolution to gradually limit the use of patent system from 125 to 110 activities and in May, a law was adopted to simplify recordkeeping and reporting requirements by switching the monthly reporting requirements to quarterly for small businesses.