The tax reform that will promote the government of Gustavo Petro and that he will present to the legislature that comes into operation on July 20, is one of the most critical issues in public debate.
The new government has made it clear that it will focus on seeking resources among those who have income over 10 million pesos and in reviewing initiatives such as removing various exemptions.
Initially, the Minister of Health, Carolina Corcho, assured that in order to seek resources for the sector, they would consider levies on sugary drinks. A tribute that had already been proposed in the 2021 tax reform, but was not accepted in the Legislative.
Likewise, the appointed Minister of Culture, Patricia Ariza, raised the urgency of reducing the tax base of iNational tax on mobile telephony consumption (INC). His proposal is to expand the taxable base of cellular plans by 1 or 2 tax value units (UVT), which in practice would mean that the tax would be paid by plans from 38,004 pesos if it is charged from a UVT or from 76,008 pesos if the low base at 2 UVT.
Faced with taxation, in statements to Noticias Caracol, the appointed director of the Dian for the next government, Luis Carlos Reyes, confirmed that consequences will be sought severe for evaders –including prison for serious cases– and spoke of changes in the valuation of assets.
These, “pFor tax purposes, they have been valued at what is known as fiscal cost and that is very beneficial for those who have companies, legal entities created especially so that they have a very low nominal value, which does not reflect their true market value,” he explained. Kings. Due to the above, he said, they will seek to have “a valuation closer to market prices for those high net worth”.
However, Cecilia López, Minister of Agriculture, also spoke of the measures that will be part of the agrarian reform. Among them, increasing taxes for farm owners who don’t pay enough.
Another change is in the wealth tax, which is sought to apply from 1,000 million pesos. Currently it begins to govern from 5,000 million pesos.
On the campaign trail, Gustavo Petro said that a wealth tax would be contemplated on the 4,000 largest personal fortunes and that more would be taken from other high-income earners.
“There are too many taxes on companies and not on individuals, and addressing the issue of income tax is essential if we want the system to be more progressive,” José Antonio Ocampo, the next finance minister, told the Financial Times.
In this sense, the Minister of Finance of the Petro government added that the corporate tax ratewhich is currently at 35% due to the increase during the pandemic, would be gradually reduced.
Finally, the president-elect has mentioned a possible tax on banks that seeks to tax the extraordinary profits that arise from the rise in interest rates.
Petro explains that with this tax he seeks bank profits to be similar to those of the productive sector.
“A higher tax on bank profits, much more competition, achieving free payment and bank transfer services, reducing financial costs in Colombia is unleashing the power of production and therefore of employment.”, he said at the time.