What is Moratorium definition/concept

When there is an extraordinary period of time to pay a debt or perform some mandatory procedure, a moratorium occurs. This term comes from the Latin moratoria and is equivalent to an extension or extension.

It is normally used in relation to debts incurred by taxpayers or in reference to the various obligations of citizens linked to the administration.

It is noteworthy that to have access to a moratorium, interested citizens must comply with a series of requirements and also procedures.

tax moratorium

At times, taxpayers are unable or unwilling to assume their responsibilities in relation to paying taxes. In view of this circumstance, the state can establish a process of moratorium or extension so that a series of conditions are met and citizens can regularize their situations and pay their unpaid taxes.

This process is directly related to the so-called fiscal sincerity or money laundering. Each tax moratorium rule or law has a specific purpose: to facilitate the payment of taxes by traders in a period of financial crisis, to promote mechanisms to reduce the shadow economy, to activate a procedure for the state to deal with the public debt, etc.

Mortgage moratorium

A significant part of the population has their home foreclosed. When there is a period of economic downturn, many people find it difficult to pay the mortgage payments to the state, this situation can lead to the loss of property due to non-payment. In this type of circumstance, the state can promote a mortgage moratorium law and with it presents a series of facilities to pay the mortgage installments.

nuclear moratorium

Many countries have halted investments in nuclear energy to avoid the risk of accidents in nuclear power plants, due to pressure from environmental groups or with the purpose of encouraging other sources of energy . This stoppage is known as a nuclear moratorium. Obviously, this moratorium has a series of economic consequences, as the electricity bill paid by citizens increases to offset the expenses incurred by the electric companies in their investments in nuclear energy.

In summary , in every nuclear moratorium there is a conflict of interest between the state that regulates energy, the electric companies interested in nuclear energy and the citizens.

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