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VAT Exemptions Seem Top Of Finance Minister's List

COLOMBIA

(BBG) -- Higher income earners stand more to benefit from the current exemptions to the value-added tax in Colombia, Finance Minister Alberto Carrasquilla wrote in an opinion column published in El Tiempo newspaper.

  • On an annual basis, exemptions to the VAT lead to around 51 trillion pesos ($14.2 billion) in lost revenue
  • Points to examples in developed countries where inequalities are addressed through higher social spending using taxpayer money
  • Colombia "needs to insist on solving the injustice" that the current VAT system implies
  • This comes ahead of the upcoming tax bill, likely to have important ramifications for the country's sovereign rating outlook.

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