Bolivia’s Ministry of Economy and Public Finance has submitted a draft law to repeal the fuel tax credit cap, aiming to restore 100% VAT credit recognition on gasoline and diesel purchases.
Bolivia’s Ministry of Economy and Public Finance submitted a draft law on 31 December 2025 to repeal the 70% cap on VAT tax credits for fuel purchases, aiming to restore full (100%) credit recognition for gasoline and diesel.
The move follows the earlier emergency measure under Supreme Decree No. 5503, introduced to stabilise the economy and regulate the fuel market.
During implementation, authorities identified the need for legal adjustments to ensure tax consistency and certainty. The proposed repeal targets Article 18 of Law No. 1356, incorporated into Law No. 2042, and seeks to correct a measure that the Ministry says unfairly harms taxpayers without increasing tax burdens.
The Ministry framed the proposal as part of a responsible economic reform sequence and reiterated its commitment to transparency and regulatory coherence.
