The technical vice minister of the Ministry of Finance, Gonzalo Hernandez, in the framework of Colombian Construction Congress 2022, He gave a voice of encouragement in the construction sector, assuring that many of the concerns in the tax reform that eliminated the exemptions to the construction sector in the construction of Social Interest Housing (VIS), were heard, therefore they will continue.
“There is a good panorama of the sector, the added value of buildings and sales have been very good, we are clear that this must continue to be promoted in relation to pre-pandemic levels, for this reason and other considerations that were presented at the time by Camacol, I want to note that In the tax reform, the most significant exempt income is maintained in relation to social interest housing, which was initially proposed to be repealed within that spirit of limitation.“, he pointed.
Thus, for example, the exemption related to the first sale of these homes would be maintained, as well as the utility in the sale of land destined for VIS housing, “this makes it possible to maintain the incentives and profitability required to make the VIS and VIP projects viable.”, Hernández stressed, and was emphatic that the return of the VAT paid in construction materials used by the company for the projects.
In addition, the deputy minister assured that some resources for financial relief in VIS are being reorganized: “That could eventually be allocated to housing subsidies to maintain incentives for the purchase and sale of housing VIS“, said.
Hernández was also emphatic that the intention of having exempt income for returns derived from loans for the purchase of VIS housing.
“There are several fallacies, this fiscal policy takes into account the conditions of economic growth, it takes into account democracy, attention to social demands. We are taking a message to the international markets of fiscal responsibility, if we do not have higher tax revenues in this environment, it is difficult to be consistent with a message of fiscal responsibility“, he pointed.
Finally he said: “Of 250 tax benefits, some are maintained, others are limited and others disappear, of which we are limiting and disappearing we barely touch a little more than 10%, it is not that there is an elimination”, said the technical deputy minister of the Ministry of Finance.
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