World

Taxes brought by the approved tax reform of 20 billion pesos – Sectors – Economy

After two days of discussion, the plenary sessions of the Chamber and Senate yesterday approved the tax reform from the government of Gustavo Petro for some 20 billion pesos by 2023, the most ambitious goal in history. What follows is the conciliation of both texts –which are different– so that the project can pass presidential sanction and become a law of the Republic.

(You can also read: Tax reform: the articles that were approved in the Senate)

“This reform is a great contribution to the change that the National Government intends to forcefully advance. Two elements are combined: guaranteeing that we have a solid fiscal policy and the additional resources to be able to promote social peace”, assured the Minister of Finance, Jose Antonio Ocampowho said that the money obtained will go to issues of peace, education, health, housing and aqueduct, among others.

(Also read: Gustavo Petro celebrates approval of tax reform: ‘Excellent job’)

The President also celebrated the approval of the reform and congratulated through his Twitter account both Ocampo and the director of the Dian, Luis Carlos Reyes, as one of the architects of the success of the project.

The Government filed the initiative on August 8, one day after the President took office, and thanks to his urgent message he had an abbreviated procedure: a first approval in the economic commissions and a second – yesterday’s – in the plenary sessions of the Chamber and Senate.

In these almost three months of discussion with different political actors, businessmen and civil society, among others, 5 billion pesos fell from the initial goal of 25 billion pesos. Issues such as the pension tax, the celebration of VAT-free days, border gasoline subsidies or the tax on oil, coal and gold exports also fell by the wayside.

How was the last discussion?

Meanwhile in Senate the discussion was resolved on Wednesday in a day of more than 15 hours, the representatives debated two days and finally approved yesterday. In both cases there was no lack of criticism from congressmen. Even the Democratic Center has already announced that it will demand the reform to continue defending the “pocket of Colombians.”

Among the articles that heated up the debate the most were that of ultra-processed foods and that of the non-deductibility of royalties

Although most of the articles of the paper were approved on both sides, there are some that were different in the text of the Chamber and the Senate and that, therefore, will be decided at the time of conciliation. This is the case of the 20 percent tax on churches when they carry out activities other than religious worship, such as selling books.

Among the articles that most heated up the debate on both sides were that of ultra-processed foods, that of non-deductibility of royaltiesthat of foreign platforms or that of prison modifications for evaders, among others.

In the first case, congressmen from different benches said that the most vulnerable people would be affected. “It will not be normal or eat chocolate with bread. This reform does not only touch the rich,” said Senator Jota Pe Hernández.

Although some foods such as industrial bread, milk, honey, sandwiches, wafers, arequipe, salami, mortadella and botifarra left the list of ultra-processed foods that would be taxed, others such as chocolate, pastry, biscuits, jams, prepared sauces or ice cream, among others.

The non-deductibility of royalties barely represents a surcharge of 3 percent for oil

According to Minister Ocampo, this tax would come into force as of September 2023 so as not to impact people at this time of high inflation. For its part, the tax on sugary drinks would be from July 1, 2023.

Another of the most controversial articles that was finally approved is the one that puts an income surcharge on oil tankers and miners based on the international price of the last 10 years. In addition to this, they will not be able to deduct royalties. “It would not be understood that oil and coal now do not do it. The impact is much lower than is thought. The non-deductibility of royalties barely represents a surcharge of 3 percent for oil. The Council of State has not ruled on it, there is only a Dian resolution that allowed it,” Ocampo told the congressmen.

According to the prison for evaders, it was defined that only after the third recidivism there will be jail. For example, a person who omits assets or declares a lower value or declares non-existent liabilities, with the purpose of fraud or evasion for an amount equal to or greater than 1,000 current legal monthly minimum wages.

In yesterday’s debate in the Chamber there were several articles that delayed the discussion. One of them was 48, which is the one that determines that non-residents or entities not domiciled in the country with a significant economic presence will be subject to income tax, as is the case with Netflix, Disney +, HBO or Spotify platforms. . Some activities such as digital services or advertising services are taxed in this section; however, others such as online education services were finally excluded.

Message against the reform and José Antonio Ocampo in the House of Representatives.

Photo:

Cesar Melgarejo. TIME

what was approved

The tax reform brings a package of new taxes for Colombians. Those who will have to pay the most will be the businessmen and, among them, the greatest burden will be assumed by those in the mining-energy sector.

Oil tankers and miners will have to pay a rent surcharge which varies with the international price of the last 10 years. In the case of oil, it would be progressive at 5, 10 and 15 percent; and in the case of coal, 5 or 10 percent. In addition to this, they will not be able to deduct royalties.

Likewise, the hydroelectric plants were left with a temporary surcharge of 3 points (from 2023 to 2026) and the financial entities another that will reach 5 points.

Those who will have the most
to pay will be the businessmen and, among them, the greatest burden will be assumed by those in the mining-energy sector

People will also have to pay more taxes. For rent, those who earn more than 13 million pesos per month will have to contribute more. Likewise, large estates will contribute. This tax will be progressive with marginal rates: 0.5 percent for assets of more than 3,000 million pesos; 1 percent for those of more than 5,000 million pesos, and 1.5 percent for those of more than 10,000 million pesos.

Don’t forget that people will also pay more because of the healthy taxes that were passed. On one side, there is the tax on sugary drinks and on the other, that on ultra-processed foods. In addition to this, there is the tax on single-use plastics. With this, some products could be doubly taxed.

(Keep reading: Neither the big-assed ants nor the hosts were spared from the ‘health tax’)

Source link

Related Articles

Leave a Reply

Your email address will not be published. Required fields are marked *

Back to top button