Other proposals of the tax reform of Duque fall

In the last hours of Tuesday, the proposal to reduce the reduction granted to companies that pay VAT in Colombia has been retained, as part of the discussions to develop the presentation of the tax reform.

Today, a company that pays this tax deducts 100% of this tax item. The idea behind the proposal was to reduce it to 90% in order to recover much of the $ 13.7 billion that the national government would need for next year's spending.

Katherine Miranda, House Representative, confirmed that the proposal was no longer part of the Funding Act because of the consumer's impact on the fact that non-deductible VAT is transferred to products purchased by citizens. .

Also read: And if it's not VAT, what new taxes will it pay for 2019?

"This proposal was born from a working table between several members of Congress where opposition members did not participate and until yesterday it was considered in the presentation of the Financing law, but fortunately, with the accusations on our part, we managed to attract this article from the newspaper, "said Miranda.

According to the MP, the chances of a budget deficit of $ 14 billion are reduced and the national government should bet on a collection of 6 to 8 billion pesos.

"We have been looking for alternatives to obtain resources for three weeks and we have not found them, which is why I think it is time to say that the 14 trillion pesos needed were not found and that the government will have to bet between 6 and 8 trillion pesos maximum collection, "said Miranda.

However, the initiative did not go either, as it would apparently violate the Treaty with the Andean Community of Nations, CAN, which states that VAT must be deducted in its entirety.

"The tax credit comes from the acquisition of goods or the use of services intended wholly for transactions taxed at the general rate and transactions subject to the zero rate system, will be reduced to 100 % ", says the article. 29 of CAN 599.

In this way, there is uncertainty as to how the missing resources from the 2019 national budget will be obtained, which, with the presentation that would be presented in the coming hours, would reach a collection of only $ 7.7 billion . Although they continue to look for alternatives, many sectors ensure that the national government's room for maneuver is reduced.

Also read: And if it's not VAT, what new taxes will it pay for 2019?