After several weeks of discussion between the National Government and Congress, the paper is ready for first debate on tax reform. After a meeting held this morning at the Ministry of Finance, the head of the portfolio, José Antonio Ocampo, confirmed that the paper will be filed this afternoon, which will be presented to Congress this Wednesday and will be debated this Thursday.
One of the main changes that the paper has compared to the original project is the amount. While the government initially hoped to raise $25 billion, Ocampo confirmed that the paper points to a somewhat lower figure: $22 billion.
(Read: Tax reform would rule out tax on oil, gold and coal).
“It is a good figure, somewhat lower than what the government had anticipated, but it increases gradually, reaching $25 billion in the last year of government, but in addition, there is an additional effect of the fight against evasion and the strengthening of the Dian, which in our opinion contributes the same in terms of collection“, said.
What comes with the presentation
Among the main changes that the project brings for its first debate are the taxes related to the hydrocarbon sector. The paper eliminates the tax of 10% to oil and coal exports and, as the minister explained, “they were replaced by two regulations. A point that had been eliminated in the first instance was re-established, the non-deductibility of royalties, this returns, and the tax on exports is replaced with a surtax on rent for oil and coal companies, which is equivalent to 10% in the first year, 7.5% in the second and 5% in the third”, explained the minister.
According to Ocampo, this sector will contribute around $9 billion to the reform.
In addition, a surcharge of 3 percentage points was also approved for hydroelectric plants. Efraín Cepeda, rapporteur coordinator of the project, said about it: “a 3% surcharge on hydroelectric plants is included in the Tax Reform proposal in order to ensure that this sector, which is making significant profits, contributes additional income that will benefit Colombians”.
Another sector for which a surcharge on income tax was confirmed is the financial sector. For the one who knows received a rate of 5 additional points, until 2027.
(Also: The dangers that the tax reform would represent for the country).
Tax reform filing for first paper
In the case of natural persons, a series of changes that had been agreed upon last week were accepted. In the wealth tax, a rate of 0.5% will apply from $3,000 million, from $5,000 the rate will be 1%, and a range from $10,000 million was included, which would pay a rate of 1.5%.
In relation to ultra-processed foods, another of the most controversial points of the project, the minister said that “there are some dairy products that we already agreed on in the second debate that will not be included, in this version they are because they have some of the characteristics that are detailed there , but the agreement with the speakers was that in the second debate we are going to exclude them”.
Also Changes were announced in the simple tax regime.
Faced with the proposal of the two days without VAT that the Government had endorsed, Ocampo confirmed that, finally, they were not included in the presentation.
(See: The second richest man in the country supports taxes but with limits).
“The government celebrates that there is already an agreement with the rapporteurs, who have signed the bulk of the paper for debate on Thursday. It is a good project, and we hope that it will be approvedOcampo concluded.
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