The tax reform passed its first debate in the third joint commissions, after the first proposal of articles was known on August 8. The government is pursuing a collection of $22 billion next year and in 2026 it would be $24.4 billion. Y An important part of the resources will come from the mining and energy sectors, which estimate that 48% of the collection will come from their activities.
(Tax would increase the hunger of a million Colombians).
The leaders of the industry associations have warned of the risks that a very high effective taxation would represent. Among the alerts they indicate are a loss of competitiveness, a possible lower investment and even a decrease in the size of operations.
For this They call for rethinking some taxes that could generate long-term impacts for fiscal accounts. Taxes such as the 10% surcharge in 2023 for mining and oil production, as well as the 3% surcharge for hydroelectric plants raised the alarm.
(The taxes that the tributary brings: Minhacienda explains the project).
‘Reform in mining is recharged’: Juan Camilo Nariño, president of the ACM
An important part of the resources sought by the national government with the tax reform would come from mining and oil. Calculations of the unions of the sectors indicate that 48% of the total collection would come from them. This has led Juan Camilo Nariño, president of the Colombian Mining Association (ACM), to consider that it is an “overloaded” reform in mining.
Some of the taxes that would cause this are the non-deductibility of royalties from income tax, as well as a 10% surcharge on income in 2023, which would decrease by 2.5 percentage points until reaching 5% in 2025. The president of the union pointed out that the implications for inflation will be important, taking into account that materials such as those for construction would be affected by the higher taxation.
Among the risks analyzed are lower investment, which would lead to lower production, and over time a contraction in mining operations, with its respective consequences on jobs and income.
Nariño emphasizes that the reform should give priority to metals that are considered strategic for the transition, such as copper, to which the articles do not make any exemptions. He pointed out that these and construction projects should be analyzed separately so that the impact is less.
‘Prevents the possibility of new investments’: Carlos Cante, president of Fenalcarbón
In line with the proposals of the leader of the ACM, Carlos Cante, president of Fenalcarbón, has pointed out that taxation as proposed would entail a series of risks for municipalities and departments whose economy is largely dependent on coal production. Additionally, coke, the main industrial product exported by Colombia, would also be affected, given that its raw material (coal) could become more expensive.
One of the main risks that there would be is a reduction in investments given the low profitability that the operation would have. According to Cante, the consequence of this is a contraction of mining operations that would lead to a reduction in employment in the medium term and with it the development of areas of the country whose economy revolves largely around the income generated by mining. industry.
The leader of the union expressed his concern since the tax reform would abruptly “suffocate” his sector. “They are not thinking about the 80 municipalities whose economic activity depends on and is moved directly by coal and coke,” he said. This is accompanied by macroeconomic risks such as a greater deficit in the country’s trade balance, which adds an important part due to the sales of these products, Cante concluded.
‘The tax on hydroelectric plants is excessive’: Camilo Sánchez, president of Andesco
Although the Minister of Transport, Guillermo Reyes, said that the excess tax for the gas industry would no longer be included in the tax reform, since the Government would withdraw it, the public services union still maintains its concern about another tax.
In the articles that were passed to the first presentation and that were approved for debate in the plenary session of Congress, a new tax was added: an additional rate of 3 percentage points for hydroelectric plants. Camilo Sánchez, president of the public services union, pointed out that “they are imposing a tax that is really excessive.” According to the union leader, this it would generate a cost overrun for the industry that could generate extra pressure on bills.
Although he stressed that they understand that the sectors with the highest extraordinary income are sought, this is part of other additional costs that will occur in the coming months, such as salary increases, which would add to these pressures.
Sánchez proposes that an alternative be that the collection be made as proposed, but that a fund be created so that the resources can be invested by the industry for works. He points out that this is “so that these new resources are reinvested in the sector and that this does not go to other places, but if we still have gaps, we close them.”
Daniela Morales Soler
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