Yacimientos Petrolíferos Fiscales Bolivianos (YPFB) informed that the state-owned company would increase oil revenues this year, and its income will grow by 35 per cent compared to last year. The oil income will reach more than 1.9 billion dollars; Bolivia will use the resources to reactivate our economy by allocating the Direct Tax on Hydrocarbons (IDH), royalties, and other taxes YPFB contributes.
Health and death insurance sales increased by 11 and 14 per cent in 2020 due to the Covid-19 pandemic; however, insurers must perform greater control during the sale of policies in the face of increased risk. Life insurance sales represent 49 per cent of the total insurance business.
Bolivia's total public debt (external and internal), with final data for 2020, exceeded 50% of Gross Domestic Product (GDP), which is a sign of the unsustainability of public finances and indebtedness. Up to December 2020, the external debt balance reached $12.17 billion.
Bolivia loses approximately $2.3 billion annually as a result of smuggling. This effect has repercussions throughout the production chain, causing companies to see a drop in sales of between 30 and 40 per cent, endangering hundreds of jobs and the stability of the national industry's operations.
After activities stoppage in 2020 due to the Covid-19 pandemic, the airline Amaszonas managed to reactivate 70 per cent of its routes and expects to recover more international destinations during the year. The company plans to recover the destinations of Sao Paulo and Rio de Janeiro in Brazil and Cusco in Peru.
Total tax revenues in Latin America and the Caribbean decreased by 11.2% in 2020 compared to the previous year due to the impact of the pandemic on tax collection in Latin American economies. The most significant declines observed in excise taxes (-13.7%), followed by income taxes (-9.9%) and VAT (-9.2%), while all other tax revenues fell by 14.2%.
The Sararenda X3D well, located in the Santa Cruz municipality of Camiri, will start drilling. This project has an investment of $74 million and will generate 320 direct jobs in its first phase. The exploratory actions will carry out by the subsidiary YPFB Andina S.A.
The Government issued Supreme Decree No. 4492, which establishes new limits for the entry and exit of foreign currency into and out of the national territory, as a preventive measure against the laundering of illicit gains, modifying Decree 29681 of 2008. Thus, it reduced from $50,000 to $20,000 the entry and exit of foreign currency.
Following the bill's announcement to implement the collection of Value Added Tax (VAT) on digital services, the Ministry of Economy informed that this regulation expects to raise 100 million bolivianos ($14.34 mn). Experts affirm that this tax will affect consumers.