Horizontal equity, simplification of the Tax Statute, vertical equity and free zones, among others, are some of the concepts that are included in the tax reform project and that perhaps many are unaware of.
(Changes to the tax? These are the 3 modifications that it would have).
These principles are key because they contain the pillars of the initiative.
Carol Marcela Albernia Díaz, professor at the Virtual Accounting Directorate of the ECCI University, prepared a glossary to explain these concepts and other controversial points of the project, which has already been filed before the Congress of the Republic and with which the National Government hopes to collect about 25 billion pesos a year.
These are the main concepts:
-Green tax on oil, gold and coal. The mining sector is one of those affected because gold, coal and oil will be charged a tax, a tax will be applied to exports, a progressive control measure for financial entities with form 10.
-Casual earnings. For insurance and inheritance, the tax reform wants to impose taxes because the more you have, the more you must pay; This goes hand in hand with the permanent creation of the wealth tax, because it increases collection as an equivalence with high capital.
-Horizontal equity. This applies to natural persons and promotes equality in the tax treatment of net income, since it eliminates the benefits that favor the higher income layers, applying the principle of progressivity.
-Vertical equity. Reduces the global nominal ceilings of exempt income. It is considered positive because the exemption is less, since by lowering the ceiling it makes the person with a progressive increase pay more. Its incidence is that the gross income is greater than 10,000,000 UVT per month, pensions are also included because they drop from 12,000 UVT to 1,790 UVT, considering a significant contribution for those over 57 and 62 years respectively, that is, pensioners.
– Simplification of the Tax Statute. It is a complex principle because it contains many provisions, types and subtopics. Its decrease has practices that can increase collection, recognizing the differences of each type of income. This modifies the calculation of the income tax of natural persons, because as the patrimony is greater, those who have an increase in capital pay progressively.
-Free trade zone. The application of the tax will be demonstrative because it will be strictly controlled that its use is 100% beneficial for Colombian imports and exports, in terms of taxation.
-Surcharge of financial institutions. It is considered a positive contribution because the effective tax rate of this sector is very low compared to the productive branch.
(Tax vs. Colombians: the effects of the project on households).
The ECCI University professor also explained that one of the incentives for Colombians is the tax on sugary drinks and ultra-processed foods. This, according to her, could generate an impact on inflation due to the increase in prices and consumption, but in the long term it is beneficial because it reduces these consumptions, favors public health, reducing the rates of diabetes, hypertension and coronary diseases. .
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