In an interview with Forbes, our partner spoke about the possible negative effects of the Tax Reform

In an interview with Forbes, our partner Camila Tapias spoke about the possible negative effects of the Tax Reform.

Camila explained that the time has come to regulate the new taxes by issuing complementary laws. Even so, she pointed out that the Value Added Tax (VAT) rate is likely to be one of the highest in the world, at 26.5%, while the average among the 28 OECD member countries is 19.2%.

Camila also drew attention to a possible increase in regional and local inequalities, especially in less developed cities. These places depend on tax incentives to attract economic development, but higher taxes could lead to investments fleeing to regions or countries with more favorable tax conditions.