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Covid-19

IMPLEMENTATION OF ECONOMIC MEASURES AS AN EFFECT OF COVID-19

In the recent weeks, the Central Government has been forced to implement different economic measures so that Bolivians can cover their most basic needs and resist the period of quarantine.

Thus, from Supreme Decree No. 4200 of March 25 of 2020, we found materialized economic measures such as the Family Bonus, the Family Basket, the reduction of service rates, among others. These measures are detailed through the following table:

FAMILY BONUS 

¿What it’s about?

Who are the beneficiaries?

How the benefit works?

Normative Reference

It’s an economic support of Bs. 500 ($us. 72) that will be granted by the Central Government - for one time only time - to families that have children in initial and primary level of public schools and students with disabilities.

 

The intention is that Bolivian families with less economic resources can cover health care, extraordinary transportation and food expenses.

Fathers and mothers of children:

 

  • At the initial and primary level of public colleges.
  • With disabilities in Public and Special Education Centers.

The father or mother of the family must present the photocopy of the beneficiary's identity card (I.D) at the agencies authorized by the Unión Bank, or other authorized financial entities in the country. 

Art. 2 of the Supreme Decree 4197.

 

First Final Disposition of the Supreme Decree 4199.

 

Only Additional Disposition of the

Supreme Decree 4205.

 

 

TEMPORARY REDUCTION OF ELECTRIC RATES

What it’s about?

Who are the beneficiaries?

How the benefit works?

Normative Reference 

 

It’s an exceptional economic measure that aims to reduce the payment of electricity rates during the months of April to June of 2020.

In that period and according to the amount of consumption, the Central Government will assume a percentage payment of the electric energy bills.

 

It’s important to highlight that this benefit implies the prohibition of cutting the service and the prohibition of imposing sanctions on consumers for non-payment.

Users of the electrical service in domiciliary and / or residential category.

  • For those individuals and families who have a consumption limit of up to Bs. 120 ($ us.17) per month, a 100% discount on the electric bill operates.
  • For those individuals and families with amounts greater than Bs. 120 ($us. 17) and less than or equal to Bs. 300 ($us. 43), a discount of 50% of the electric bill operates.
  • For those individuals and families with amounts greater than Bs. 300 ($us. 43) and less o equal to Bs. 500 ($us. 72), operates a 40% discount on the electric bill.
  • For those individuals and families that have amounts greater than Bs. 500 ($us. 72) and less than or equal to Bs. 1,000 ($us. 144), a discount of 30% of the electric bill operates.
  • For those individuals and families with amounts greater than Bs. 1,000 ($us. 144), a discount of 20% of the electric bill operates.

The State will pay the fees for public lighting and cleaning, and the fee of the Cooperative Inspection and Control Authority (Afcoop).

 

Consumers must pay for electric energy services within 3 months after the total quarantine is lifted.

 

The bill that consumers will receive will expressly contain:

 

  • Value amount of the total service consumed in the month.
  • Percentage that is discounted.

 

  • Final payment amount

 

In other words, users will receive a bill for the total consumed, but which only requires payment of the excess amount to the discount.

Art. 24 to 29 of the Supreme Decree 4206.

 

Normative Resolution of the Directory No. 102000000007 of the National Service of Taxes (SIN).

 

 

 

 

 

 

 

 

 

 

 

REDUCCIÓN TEMPORAL DE TARIFAS DE AGUA

What it’s about?

Who are the beneficiaries?

How the benefit works?

Normative Reference

This is a benefit granted by the Central Government in the reduction of 50% of the consumption rate of household water in the months of April, May and June of 2020.

 

It’s important to highlight that service providers are prohibited of outage the service and imposing sanctions on users for non-payment.

Every Bolivian family that has access to drinking water.

There are no consumption limits.

 

For the purposes of the benefit, the bill for April is considered based on the meter reading for March 2020, and so on.

 

Users will receive the invoice for the total value of the monthly service, however, they will only pay 50% of the invoiced amount.

 

Users must pay for household water services within 3 months after the completion of the total quarantine.

Art. 30 and 31 of the Supreme Decree 4206.

 

 

TEMPORARY REDUCTION OF HOUSEHOLD NATURAL GAS RATES

What it’s about?

Who are the beneficiaries?

How the benefit works?

Normative Reference 

 

This benefit consists of a reduction of 50% of the total invoiced for household gas consumption in the months corresponding to April, May and June of 2020.

 

It’s important to highlight that the outage service  and the imposition of penalties for non-payment are prohibited.

 

All those users who enjoy of the household natural gas.

 

 

Although the companies that provide the service will issue invoices for the value of 100%, the user will only pay 50% of the total amount, the balance will be covered by the central level of the State.

 

Users will receive the invoice for the total value of the monthly service, however, they will only pay 50% of the invoiced amount.

 

Consumers must pay for the service within 3 months of the removal of the total quarantine.

 

Art. 32 y 33 del D.S 4206

 

Normative Resolution of the Directory No. 102000000007 of the National Service of Taxes (SIN).

 

 

FAMILY'S BASIC NEEDS PACKAGE

What it’s about?

Who are the beneficiaries

How the benefit works?

Normative Reference

This is a stipend of Bs. 400 ($us. 57), granted by the Central Government to Bolivian households with lower incomes.

 

It will be distributed, for the only time, both in the rural and urban areas of the Bolivian territory.

 

The charging of said benefit is valid for three months.

  • People who receive the Dignity Income (not a retirement);
  • Mothers who receive the Juana Azurduy Bonus;
  • People with disabilities.

The corresponding Financial Institutions will pay this benefit, together with the Dignity Income or the Juana Azurduy Bonus.

 

In the case of people with disabilities, the same payment method will be applied.

 

Exceptionally, they can be authorized for said collection:

 

ü  Spouse

ü  Cohabiting

ü  Children

ü  Grandchildren

ü  Nephews

 

Those authorized must be between 18 and 65 years old.

Art. 11 of the Supreme Decree 4200.

 

 

PROHIBITION OF SERVICE OUTAGE OF TELECOMMUNICATION SERVICES

What it’s about?

Who are the beneficiaries?

How the benefit works?

Normative Reference 

It’s a prohibition of service ou telecommunications services and information technologies.

 

Likewise, we highlight that the imposition of restrictions on users is prohibited due to non-payment.

The beneficiaries are all users of:

 

  • Post-payment services, with respect to invoices for services for the months of January, February and March of 2020.
  • Pre-paid services with contracts signed with a fixed recharge date, for the months of March and April of 2020.

 

The services included are: Fixed Telephony, Mobile Telephony, Fixed Internet, Mobile Internet and Cable TV, among others.

 

Users must pay their outstanding bills within 3 months after the quarantine is lifted..

Art. 2 of the 

 1294 Law.

 

Art. 36 of the Supreme Decree 4206.

 

 

 

DEFERMENT OF PAYMENTS TO THE ATT

What it’s about?

Who are the beneficiaries?

How the benefit works?

Normative Reference

 

It’s a postponement of the obligations that had to be paid to the ATT, such as the payment for licenses or fees.

 

This postponement does not generate fines and interest, and shall remain until the removal of the quarantine is declared.

  • Operators or providers of telecommunications services and information and communication technologies.
  • Transport and postal service operators.

Obligations must be paid within 3 months after the quarantine is lifted.

Art. 37 of the Supreme Decree 4206

(Called “erratum” Decree).

 

 

REPROGRAMMING OF BANKING CREDITS

What it’s about?

Who are the beneficiaries?

How the benefit works?

Normative Reference 

Its postponement of the payment of credits (bank loans) and other types of encumbrances of the national credit system.

 

The postponement step will be in effect for the duration of the quarantine and a maximum term of up to 6 months will be granted for compliance.

All bank loan borrowers in any financial institution in the national territory.

Initially, financial entities will automatically defer credits (without additional surcharges).

 

The borrower will not have to carry out any previous procedure since the reprogramming is automatic. To confirm the date of your next payment and / or payment plan, you can contact your financial institution at the numbers enabled.

 

Remember that capitalization of interest is prohibited.

Art. 1 of the 1294 Law.

 

Art 2 of the Supreme Decree 4206.

 

 

IUE PAYMENT DEFERMENT

What it’s about?

Who are the beneficiaries?

How the benefit works?

Normative Reference

This is a postponement of payment of the Corporate Income Tax (IUE) for those taxpayers with management closed until December 31 of 2019.

 

Payment is deferred until May 29 of 2020.

Taxpayers with management closed as of December 31 of 2019.

  • If the Taxpayer pays 50% of the tax determined before June 1th of 2020, he may pay the balance in 3 monthly installments, without maintenance of value or interest.
  • If the Taxpayer pays 100% of the tax determined before May 15 of 2020, they may deduct said payment on account of the IT, in the following proportion:
  • For taxpayers of the GRACO and PRICO Regime, a factor of 1: 1.1 will be applied;
  • For taxpayers of the General Regime (Rest), a factor of 1: 1.2 will be applied.

Arts. 2 y 3 of the Supreme Decree 4198.

 

 

FREE SUPPLY OF MEDICINES AND BIOSECURITY MATERIAL

What it’s about?

Who are the beneficiaries?

How the benefit works?

Normative Reference 

 

It consists of government support to provide free medicines to those infected with COVID -19.

 

It also implies a commitment to the provision of biosafety material for all staff working in medical facilities caring for patients.

 

Likewise, treatment for COVID-19 infection will be granted by the public subsector health facilities to the affected population, free of charge.

Medicines

 

The beneficiaries are people infected with the Coronavirus (COVID-19).

 

Biosecurity material

 

The beneficiaries are the medical personnel of:

  • Health establishments, clinics and other similar in the public sector;
  • Short-term Social Security Entities;
  • Private establishments belonging to the National Health System.

The Ministry of Health and health establishments will provide appropriate medicines and biosafety material free of charge.

 

If it were the case of third, second and first level health establishments, the Ministry of Health may provide medicines and biosecurity equipment after coordination with the Autonomous Territorial Entities (ETAs).

Art. 7 of the Supreme Decree 4205.

 

Art. 5 of the1293 Law. 

 

 

 

MODIFICATIONS TO COMMON PRACTICES AS AN EFFECT OF COVID-19

At the same time that the Central Government was implementing economic measures to mitigate the economic effects of COVID-19, a series of modifications were made to different routine activities that, although they do not consist of new benefits or monetary incentives, are important because they affect the Bolivian population behavior, as we detailed below:

DIGNITY INCOME

What does the modification consist of?

What are the peculiarities of the modification?

Normative Reference 

 

For the purpose of the beneficiaries (elderly people), to avoid exposing themselves to contracting the virus and remain isolated in their homes, the Central Government exceptionally determined that the Dignity or Retirement Income can be collected by a relative representative of the beneficiary.

 

The following may be authorized for said collection:

 

  • Spouse
  • Cohabiting
  • Children
  • Grandchildren
  • Nephews

 

Those authorized must be between 18 and 65 years old.

 

The Dignity Income beneficiary and / or the retiree must authorize a family member to collect the benefit on their behalf.

 

Said authorization may be materialized by means printed or handwritten note, signed and with the beneficiary's fingerprint. Said authorization will be considered as an affidavit.

 

Whatever the representative, he must necessarily present:

 

  • Identity Card of the Beneficiary;
  • Original Identity Card of the person who collects this benefit;
  • Original authorization note.

 

All these documents must be delivered to the cashier of the financial institution where the collection is made.

First Transitory Disposition of the del Supreme Decree 4200.

 

 

 

IVA TAX CREDIT FOR INDEPENDENT PROFESSIONALS

What does the modification consist of?

What are the peculiarities of the modification? 

Normative Reference 

It implies that independent professionals, for IVA purposes, can download invoices originated in the purchase of food, health and education services from their direct family nucleus.

Previously, independent professionals could only download invoices inherent to their profession.

 

Now, the Central Government authorized that until December 31 of 2020, the invoices originated by the purchase of food, health and education of the direct family nucleus be considered for IVA purposes.

Art. 5 of the Supreme Decree 4198.