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Fair and equitable taxation for smallholders in Bolivia

March 29, 2017 4:01 pm

AOPEB (Asociación de Organizaciones de Productores Ecológicos de Bolivia) has 85 member organisations and represents about 70,000 households in Bolivia. AOPEB was founded in 1991 and focuses on the organic production, processing, marketing and capacity building to improve self-sufficiency and food sovereignty of farmers and indigenous communities in Bolivia.

Formally registered economic farmer organisations need to pay value-added taxes on their sales, while they cannot get invoices from their suppliers (smallholder farmers) to lower this tax burden. ESFIM supports research to analyse the tax regulations, reviewing past initiatives and new possibilities to create a mechanism (such as an improved Régimen Agrario Unificado – RAU) that reduces the tax burden of farmers organisations. This will improve their economic position compared with competing traders, who often work in the informal economy and pay no value-added tax.

The implementation of the project will start in the 2nd quarter of 2017. The project will be finalised by the end of 2017.