Bolivia's government has announced two tax relief measures cutting the overall burden by around 2.39%, moderating a Special Consumption Tax increase on beverages to roughly 8.5% — well below the inflation-driven rise that automatic adjustments would have triggered — while replacing the existing embedded VAT calculation with a transparent 13% rate applied outside the invoice price. 

RF Report

Bolivia’s government has announced two tax relief measures on 10 March 2026 aimed at easing financial pressure on citizens and businesses while improving tax system transparency.

The National Tax Service (SIN) CEO, Jorge Zogbi Nogales, confirmed that the combined reforms will reduce the overall tax burden by approximately 2.39%, comprising a 0.45% reduction in the Special Consumption Tax (ICE) and a 1.94% decrease in the Value Added Tax (VAT).

Adjusted ICE protects wine industry

The government has moderated the ICE increase to approximately 8.5%, significantly below the 22.5% rise that inflation would have triggered over the past two years through automatic Housing Development Unit (UFV) adjustments established under Supreme Decree No. 5563.

The government enacted Supreme Decree 5563 on 6 March 2026.

“The tables have been recalculated so that the ICE burden is proportionate to the economic capacity of the sector, preventing the tax from becoming confiscatory for the wine industry, whose relevance is strategic for the country,” Zogbi explained.

This intervention particularly shields the alcoholic and non-alcoholic beverage production sector from potentially damaging tax hikes.

Simplified VAT calculation

The Draft Law on Transparency and Tax Relief introduces a 13% effective VAT rate applied transparently “outside” the invoice price, replacing the current system where tax is calculated “within” the price at an effective rate of 14.94%. This change allows taxpayers to clearly see the exact tax amount on receipts while helping businesses calculate obligations more accurately, reducing errors and potential penalties.

Earlier, the Bolivian government introduced the Transparency and Tax Relief Bill on 19 February 2026 to reform the tax system, aiming to help entrepreneurs and businesses address heavy tax debts and reduce administrative burdens.