The Bill “De incentivo al arte, modifica y deroga la Ley No. 1299/98, de creación del Fondo Nacional de la Cultura (FONDEC)”, presented by the deputy Héctor David Ocampos, was approved by the Lower House during an extraordinary session held on Tuesday 18 June.
The document that is now to be passed to the Senate for consideration will update the regulations of the law so that the cultural promotion scheme that it foresees becomes more effective, creating a system that stimulates greater participation of the private sector in the support and promotion of culture.
The initiative also identifies the role that FONDEC will play in the new cultural promotion scheme, which involves two main actions: the creation of a culture fund, and the implementation of tax incentives for the private sector.
A schedule of fines is also foreseen for those who infringe the Law and improperly divert the funds away from its original purpose. Thus, in article 48, the text mentions that the beneficiary that diverts the funds for purposes other than those stated in the project should pay a fine equal to or double the amount granted, apart from other criminal charges and administrative fees that could arise.