The Autonomous Committee of the Fiscal Rule (Carf) presented a new pronouncement, this time on the hydrocarbon policy in Colombia, tax reform and fiscal sustainability.
(See: Oil surtax proposal is more burdensome, according to ACP calculations).
The Committee emphasized that “the continuity of the oil and gas exploration and exploitation policy in the country is necessary given the importance of these resources for the sustainability of public finances and the difficulty of replacing them in the short term”.
Carf also stressed that certainty about future income is essential to maintain the funding sources and an adequate level of risk, and that, linked to this, is the tax reform, which, they highlighted, is important for the sustainability of public finances.
(See: For 7 out of 10 Colombians, oil is needed to overcome poverty).
Faced with this and the changes proposed in the taxation of the sector presented by the project, the Carf made a call “so that the competitiveness of investments in the sector is ensured within the global economic context, and that the modifications to the tax regime that are approved ensure equivalent treatment for all the actors in the sector in a transversal manner”.
The Committee therefore said that it is important that the hydrocarbon policy and the energy transition take into account “clearly and believably” the capacity of the economy and the government to replace said resources permanently and in the periods required.
(See: ‘In 2023 the potential of offshore gas reserves would be known’: Shell).
The Committee spoke of how the high dependence on these transfers for the Nation “means that a policy that suspends activity or discourages investment in the sector represents a high risk for the fiscal and exchange rate sustainability of the country with adverse effects on development and economic growth”.
In addition, the autonomous body spoke of Ecopetrol as a strategic asset for the Nation, and that, therefore, maintaining its investment dynamics and financial soundness is essential for economic and fiscal stability.
(See: The proposals that Petro made to the Colombian mining sector).
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