The president of the National Association of Foreign Trade (ANALDEX), Javier Díaz, warned that the Tax Reform Project presented by the Government will have negative effects on the competitiveness of the country YBAbout logistics costs.
Díaz explained that the initiative includes an increase in fuel taxes, which would directly impact load transport. “Gasoline from 5% to 19%, but is increasing carbon tax. This ends having a result in the price of diesel product, gasoline, and therefore that moves to transport costs, because transport moves basically with diesel”He said.
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The union leader said that the measure would not only increase foreign trade, but also affect the economy in general. “If it increases, transport costs are going to be very expensive and that affects the entire economy, not only to exports. It impacts the family basket,” he emphasized.
At the moment, Logistic costs in Colombia represent 17.9% of the value of products on average, while in competiting countries they range between 8% and 9.5%. Díaz stressed that this difference constitutes a disadvantage for national exporters, especially for those who must mobilize raw materials from inside the country to ports.
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Logistic costs in Colombia reach 17.9 % compared to 8 % in OECD countries.
Courtesy
“For a Colombian businessman who is inside the country to bring raw materials, export, as he cannot compete with entrepreneurs from other countries that have much lower transport costs. That is the concern”He said.
Beyond fuels, Díaz expressed concern about the effect that new tax burdens would have on foreign investment. “SI is not competitive, the investment is located where it is. So, when you increase taxes, when it taxes heritage, it is undoubtedly affecting competitiveness against other countries”He warned.
In that sense, He recalled that the corporate income rate in Colombia reaches 35%, while in Central America countries the average is 25%. “To think that one can increase taxes indefinitely and unpunished and nothing happens, no. Yes, and competitiveness is lost and investors locate where they will have the best profitability, and with those tax rates it will not be Colombia,” he said.
(See more: Tax Reform: Tax impacts proposed by the Government)
National Congress of Exporters
Courtesy
Foreign trade situation
The leader recalled that the country’s goal was to exceed US $ 50,000 million in annual exports, but that this goal will hardly be met. “Last year we ended at US $ 49,500 million and the previous year at US $ 49.3 billion and we expected to move from US $ 50,000 million and we will not arrive. I think we will be more or less equal to last year, if perhaps a few hundred or thousands of dollars more on account of the coffee,” he said.
Díaz insisted that the highest costs derived from the tax reform will directly affect foreign trade, a sector that already faces logistics and competitiveness challenges. “ANDThese taxes have an effect on the issue of transport, particularly for the foreign trade sector, and that is that transport costs can be increased”He stressed.
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Diana K. Rodríguez T.
Portfolio journalist
