This week began with the new report on tax collection from the Dian for the month of August, which increasingly buries expectations that the National Government will meet the collection goal for this year and puts pressure on the cash flow problems facing the Nation, despite the fact that the dynamics in consumption It gave indications that this sector of the economy would improve in the second half of the year.
In the run-up to Congress deciding the future of the General Budget of the Nation for 2025, which largely depends on the collection capacities of the National Tax and Customs Directorate, the entity’s accounts show a 30% drop in August and do not even reach the goal set a few months ago by the Ministry of Finance, reviving the debate on the need for new spending cuts.
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According to the tax authority, $16.08 billion pesos were collected in the eighth month of the year, a figure that is $7.17 billion lower than the same month in 2023, when taxes left the country with more than $23.2 billion pesos. In other words, this value is 31% lower in the monthly comparison.
On the other hand, as regards the cumulative figure from January to August, although the drop is smaller, there is also a much lower collection, since the current account stands at $178.63 billion and this figure is $18.4 billion below the $197.02 billion of the first eight months of 2023.
Dian’s procedures
Courtesy
Of the $178.63 billion, according to data from the Dian. Of this total, the withholding tax Income tax contributed $63.75 billion, representing 35.7% of total revenue, while sales tax ranked second, generating $37.41 billion, equivalent to 20.9% of total revenue.
Other taxes contributed $51.25 billion, which corresponds to 28.8% of the total accumulated revenue until August 2024, and direct taxes on income totaled $25.94 billion, representing 14.5% of the total. Another view worth keeping in mind in the report of the Tax Directorate says that 85.7% of the participation in the collection so far this year has been due to domestic economic activity, after totaling $153.17 billion.
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Bad debt portfolio
This week, the Dian also released reports on the management of the delinquent portfolio, where they reported that thanks to their work throughout the country, last week the collection of $4.2 billion owed was carried out. for approximately 19,210 taxpayers who had not met their outstanding obligations with the entity.
According to Jairo Orlando Villabona Robayo, head of the Directorate, “as part of the compulsory collection process regulated by the Tax Statute, and in view of the non-compliance by some taxpayers, the precautionary measures dictated by judicial resolutions were executed.”
This report also stated that in recent days 344 were carried out seizures of property, 258 appraisals, 14,248 seizures of furniture and real estate, and compliance with 5,063 payment facilities was verified. These collection processes are due to non-compliance with obligations regarding income tax, sales tax (VAT), and consumption tax.
Jairo Villabona, director of the Dian
Courtesy – Dian
“So far in 2024, the tax authority has managed to advance 14,652,826 collection actions for delinquent portfolios. Electronic invoicing in Love and Friendship Within the framework of the commercial celebration of Love and Friendship, during the weekend the Dian made 12,791 invoice rotation visits (that the total sales are supported with the corresponding electronic invoice) to commercial establishments throughout the country to verify compliance with the issuance of the electronic invoice,” concluded the Dian.
Budget pressure
These data were known at a time when the General Budget The 2025 National Budget faces challenges in Congress due to the lack of support in revenue projections, since of the $523 billion requested, $24.1 billion lack solid support and depend on the efficiency of the Dian’s collection, which in the first half of the year did not meet expectations, raising doubts about its future capacity.
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Authorities such as the Autonomous Committee of the Fiscal Rule (Carf) have warned about risks in the Government’s projections, pointing out that $14.6 billion depend on the increase in the management of the Dian. However, problems such as the lack of personnel and technology in the entity limit its capacity to increase collection in the short term, which could generate a significant fiscal deficit.
Despite the efforts of the Dian to advance in the hiring of personnel, the pace is slow, which negatively impacts its capacity to collect taxes. In addition, legal problems and legal protections have delayed the incorporation of employees, which worsens the fiscal situation and complicates the viability of meeting the collection goals set for 2025.
