This Tuesday – December 10 – the debate officially began on the financing bill promoted by the National Government to raise the money it needs in the spending projections of the 2025 General Budget and which continues to generate controversy among economists because of the effects it will have and doubts among citizens because of the impact on their pockets.
The new text that was presented by the Ministry of Finance, from which they will seek to have it approved in ordinary sessions, brings several changes in its essence, which although they have been widely justified by the Executive, have several congressmen upset because it is not they agreed.
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VAT on hybrid vehicles, taxes on online games of luck and chanceas well as carbon taxes and the change in taxation on occasional profits, are some of the fronts that were reviewed in the project, which called for joint economic sessions and that will go hand in hand with movements to the fiscal rule.
What will change?
The first thing to say is that the new articles eliminate the article that proposed a 19% VAT for luck and chance platforms, due to the uncertainty about its impact and possible implications. This marks an important change with respect to what was discussed with the Legislature, since it was said that it would be gradual.
Taxes
The one that did remain progressive was the carbon tax, which will start at $41,000 per ton in 2025 up to $75,000 in 2027. Over time, it will be a partial application of 75% for Jet Fuel and diesel between 2025 and 2027, with a full rate from 2028.
On the other hand, as Portafolio announced, the wealth tax threshold remains at 72,000 UVT ($3,368 million), discarding the initial proposed reduction. However, rates are adjusted, starting at 0.5% for certain taxpayer brackets.
As far as casual earnings are concerned, the article that proposed increasing the rate from 15% to 20% was eliminated, preserving the current conditions, which represents a relief for individual taxpayers.
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The hybrids were saved
In the new financing bill, the increase in VAT to 19% for hybrid vehicles is ruled out, remaining at 5% to encourage their purchase in line with the energy transition policy. Hand in hand with this, a gradual reduction in the corporate income tax is proposed, from 35% to 30% by 2039, with a rate of 27% for small and medium-sized companies.
However, it was also proposed to apply VAT to imports of less than US$200, carried out on electronic commerce platforms, in order to stop irregularities in cross-border trade activities and redefines this tax to the tourism sector, going from excluded to exempt for three years, promoting its strategic development.
E-commerce
The articles also eliminate the 19% discount on income tax for dividends greater than 1,090 UVT, leveling the tax treatment between labor and capital income, and seeking, according to the Ministry of Finance and speakers, greater equity. tax.
An amnesty law
The financing law proposal includes amnesties for tax debtors and traffic fines, a point in which it specifies that violators of traffic rules can access a 50% reduction in the total debt and 100% in interest. Likewise, taxpayers with tax debts can reduce interest and penalties by making payments before December 2024. These measures seek to encourage tax compliance and alleviate economic burdens for citizens.
Colombian pesos
Specifically, regarding this point, it says that “all offenders who have pending payment of fines, are paying or have breached payment agreements for violations of traffic rules imposed until December 31, 2024, may benefit, for a only once, within the following six (6) months, from the entry into force of this Law, after attending a course on traffic rules in a Comprehensive Care Center duly registered with the RUNT, to a discount of fifty percent (50%) of the total debt and one hundred percent (100%) of their respective interests.”
Finally, faced with the possibility of the simple regime being eliminated, it was finally clear that it will be extended until 2026 before its definitive elimination and according to the Government, it incorporates economic incentives, defines transition strategies towards a more equitable system and promotes progressive adjustments to minimize immediate impacts on the local economy.
