ITF collects US$7mn in first month

The Bolivian tax on financial transactions has collected 57.4mn bolivianos (US$7.3mn) in the month of July, according to a report from the national tax agency SIN. The results showed that the tax raked in 5% or 1.4mn bolivianos more in the second half of the month compared to the first. The ITF went into effect on the first of July this year in an effort to boost government funds. Banks continue to see little effect on their operations as a result of the tax, contrary to belief that the ITF would discourage use of the banking system and foster financial transactions outside the formal system. The ITF charges 0.3% on banking transactions including credit and debit operations in local and foreign currency as well as money transfers and remittances sent from abroad. The government hopes to raise US$45mn by the end of the year and US$90mn over the next two years from the tax on financial transactions.