Tax reform could unleash lawsuits by US oil companies against the Petro government, according to ‘The Wall Street Journal’

American oil companies could sue the Petro government on account of the tax reform that was approved by Congress, according to an article published by The Wall Street Journal and titledColombia unsettles markets with higher taxes on oil and wealth to boost anti-poverty spending.’

The newspaper quotes Ricardo Triana, executive director of the Council of American Companies (CEA), who pointed out that the tax changes in the country could expose the Government to lawsuits from US companies that see the matter as a “breach of contract and a violation of the free trade agreement between the two countries.

One of the strongest debates in the tax reform process took place around taxes on the mining-energy sector. Without a doubt, it will be the majority contributor of resources. In addition to the income tax for legal entities that governs the country, which is 35%, a surcharge was imposed on the income tax on oil and coal companies: it is equivalent to 10% in the first year, 7.5 % in the second and 5% in the third.

The Minister of Finance, José Antonio Ocampo, said that the tax falls on the excess profits of the sector, which has had juicy profits with an oil price that has remained at high levels, above 100 dollars, as well as that of coal. “It is capturing part of the surplus generated by the very high prices of oil and coal,” Ocampo said.

But if something caused a bloody battle in the tax reform process in Congress, it was the measure with which the mining-oil companies will not be able to deduct royalties when paying their income tax. After a strong controversy, the norm was included.

Colombia’s efforts to combat poverty come as policymakers in emerging markets grapple with rising inflation, as well as the collateral effects of slower global economic growth and rising interest rates in the US. .USA”, he says The Wall Street Journal.

“In addition to those factors, which have hit economies around the world, Wall Street analysts cite uncertainties surrounding Petro’s plans to increase spending on social programs, provide credit to poor farmers and gradually phase out dependency. of oil and coal, the two main exports of the country”, adds the newspaper.

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