Free Trial

Seeking To Raise 15.2 trillion Pesos ($4 billion) Of Annual Revenue

COLOMBIA
  • Colombia Finance Minister Jose Manuel Restrepo presented the government's proposed tax bill, which will be sent to Congress July 20. The new and revised set of tax increases comes less than three months after a previous proposal failed, initiating widespread social unrest and culminating in the nation losing its investment grade rating.
  • President Duque's administration is seeking to raise 15.2 trillion pesos ($4 billion) of annual revenue, for the most part by lifting levies on companies.
  • Restrepo travelled across Colombia and the U.S. holding meetings with business leaders, investors, students looking for "consensus".
  • He said the text won't modify the value added tax, set levies on pensions or expand the base for individuals to pay more taxes, measures that sparked the civil unrest.
    • Corporate tax rate will rise to 35% from 30% starting in 2022, which will raise 6.7 trillion pesos, according to a document from the presidency.
    • Government committed to cut spending by 1.9 trillion pesos.
    • Tax administration seeks additional revenues of 2.7 trillion pesos.
    • Government will continue handouts to the most vulnerable in 2022 and subsidize payrolls for small companies.

To read the full story

Close

Why MNI

MNI is the leading provider

of intelligence and analysis on the Global Fixed Income, Foreign Exchange and Energy markets. We use an innovative combination of real-time analysis, deep fundamental research and journalism to provide unique and actionable insights for traders and investors. Our "All signal, no noise" approach drives an intelligence service that is succinct and timely, which is highly regarded by our time constrained client base.

Our Head Office is in London with offices in Chicago, Washington and Beijing, as well as an on the ground presence in other major financial centres across the world.