With the filing of the Financing Law project in Congress, a new one also began Stage of analysis of the initiative, prior to its discussion and debate, which leaves for now several questions about the impacts it could have for the pocket of Colombians.
(Read: Tax Reform: Tax impacts proposed by the Government).
While the Minister of Finance, Germán Ávila, called to build a fiscal pact to guarantee “The stability of finance” of the country, there are several questions about the project, mainly due to the effects they could have on the cost of living of people.
“We hope there is a serious, responsible debate, in which the opinions of the different social, political, union and economic actors of the country are heard,”Said Minister Ávila after the filing of the initiative.
However, voices such as Senator Angélica Lozano, of the Green Party, state that the project “It was created by the government to be denied” since it contemplates very sensitive points, which could raise the fiscal messes of the country and the pocket of Colombians.
(See: The tax reform will press people and companies stronger).
And it is that according to preliminary analysis of the text close to being discussed, the effect on fuel taxes can be translated into food transport blows.
The document proposes an additional 5% gasoline and diesel in 2026; 10% in 2027 and 19% in 2028.
According to calculations, this could raise annual inflation between 0.4– 1.0 pp in the years of adjustment, with greater effect in diesel -dependent regions for load.
In addition, There are risks that this moves to freight and logistics, which can take the convergence of inflation.
It should be noted that part of the cost of living rises for fuels and services. This can be translated into an effect is regressive, because lower income households dedicate greater proportion of transportation and food spending.
Germán Ávila, Minister of Finance filed the new tax reform.
Courtesy: Minhacienda
Tax increase
The tax reform project foresees the collection of VAT of 19 % to the games of chance, digital platforms and churches.
It also proposes to eliminate the exemption from the VAT that foreign tourists enjoy in lodging expenses, although these people can recover it when they are going to leave the country.
Besides, I know “It will increase VAT, which is currently 5 %, 19 % for hybrid vehicles” well “At the time this tax benefit was created with the idea of stimulating the process of transition to electric vehicles”Ávila added.
The reform also stipulates that the VAT for wine, brandy and rum increases from 5 to 19 %, as well as for whiskey, brandy, vodka and its concentrates. The entertainment area was also included in the reform project, which establishes the collection of the 19 % tax to the ballots for concerts and sporting events whose cost exceeds 500,000 pesos.
(Besides: New Tax Reform: Why the tax burden would generate possible capital leakage).
The bill also contemplates the increase in VAT charged to fossil fuels (gasoline and diesel), which will go from 5 to 10 % as of January 1, 2026 and will be equated with the General VAT, of 19 %, as of January 1, 2027.
“We are still looking to dismiss the consumption of strong energies based on fossil products that generate a very high level of contamination”the minister added.
The Government clarified that no food of the family basket will be taxed with VAT, but in the bill are 5 % taxes for products such as coffee, oats, industrial rice, edible oils, chocolate and pastes, among others.
The retention at the source will also be affected because, if the reform is approved, new tariff tables, up to 41 %, will begin to rule in July 2026.
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