Fiscal convention proposed to review fiscal federalism

There is a call for a new fiscal convention to review fiscal federalism and address long-standing issues in public spending. Historical challenges include the concentration of wealth, formal employment deficits, regional development inequality, and poverty.

Discussions highlight the regressive nature of Value Added Tax (VAT), noting that it disproportionately affects low-income groups when applied to basic necessities such as food, clothing, housing, and medical care. Additionally, VAT can place heavy burdens on small businesses, potentially leading to tax evasion or reduced income.